Things being in the red means it would have been wise to have moved out of stocks (which you can do within a 401k - don't know why anyone would advise you not to use tax-advantaged space because of one asset classes performance) before they went down. Of course you didn't get that advice before they went down so not much you can do about that now. As for what happens next, well I assure you the person giving you advice hasn't a clue.