Q.I'm in my 70's and I see the market going down all the time. I don't have as much time as a 20-year-old to wait for a turn around. Should I cut my losses and put what's left in a CD? How long does it usually take for the market to up swing?

A. First, the perception that the market is "going down all the time" is misplaced. The market bottomed on April 4th of this year (2001) and since that time recovered into a narrow trading range. If your asset allocation was appropriate from the start, there should be no need to run to a CD at this time.

However, to recover all of your market losses from the last two years will certainly require patience. While no one can predict when the economy and the stock market will soar again, generally two to three times the number of months required for the fall will be needed for recovery. So if the duration of the market decline is 18 months, you will likely need 3 years to approach the previous level of your accounts.