Recent volatility and Fed dropping rates....what did you do?

Well, the sub-prime mess that hit the US markets (and in-turn global markets) a couple of months ago, causing the Fed to drop rates raises a few questions:

How did you take the downturn - did you buy, sell or do nothing. It was a great opportunity is assess one's investments as far as risk goes. If you sold in panic, you have way too much equity exposure.

Personally, my portfolio was low on Emerging markets and I took the opportunity to buy into some emerging markets (VEIEX - Vanguard Emerging Markets Index fund).

Overall - if you did nothing that is great too - it means you are on cruise control with your allocations - "stay the course" as they say.

With the Fed lowering rates, I moved some of my cash holdings into fixed deposits (yielding 5.2% APY). IMHO, in the short term, CD rates for "idle" cash will beat Money Market and Online bank rates.....so here's the tip for the day - lock in those CD rates while you can :-)