If you want to save your assets, here are 13 things to think about now. (Thirteen seems the appropriate number, given the markets' current run of bad luck.)

Financials' Tears Flow from Japan

Options Traders See Only Enough Fear for a Short-Term Rally

Bigger Rate Cut from Fed Looks More Likely

1. The stock market is not responding to the Fed cuts the "experts" predicted. So do not assume that the market will go up when we get the expected 50 basis-point cut from the Federal Open Market Committee next week. In fact, no one may care at all until we see evidence of real rebound in the economy. Right now, no one has good "visibility" on the economy.

2. The Fed is behind the curve. Sources who speak regularly with Fed staff say that the folks in Washington do not think that the collapse of the stock market is having a sudden, adverse effect on consumer spending. Instead, the Washingtonians believe that the negative wealth effect will play out over time, and can be handled by gradual interest rate cuts. Perhaps. But what if collapsing equity values mean that people buy less next week? In that case, the Fed is, and may continue to be, tardy in its rate cuts.

3. This is not the market bottom. Here's why not: People are worried about the global economy, and stock prices are going down. At the bottom, people are worried, but stocks go up.

4. Stock market crashes generally occur at depressed levels. In 1987, the October crash came after the market was well off the August peak. In the Great Depression, the Dow Jones Industrial Average had its worst drop in 1932 -- down 62% from the peak of that year -- not in 1929. This makes sense when you think about it. Investors hammered by losses are more likely to find the pain so great that they eventually lighten up or sell altogether. So, don't be an historical ignoramus and think that just because the market today is well off its highs it has seen the worst.

5. All stocks are vulnerable to a massive selloff -- not just tech. Valuations in general are still above historical levels at bear market bottoms. The Nasdaq Composite Index may be down about 65%, but the S&P 500 has really been crushed only in the past month, and the Dow is down only 15% from its peak.

   If we get a serious recession, you should be mentally prepared to see the entire market trading 15% to 20% lower. You can do the math yourself on where that would put the Comp, the S&P 500 and the Dow. Take the bellwethers -- GE (GE:NYSE - news - boards), IBM (IBM:NYSE - news - boards), Level 3 (LVLT:Nasdaq - news - boards), Cisco (CSCO:Nasdaq - news - boards), down by that amount, too. That's what I mean.

6. The economic slowdown will almost certainly be more severe than the Wall Street houses say. Brokers and mutual fund companies always downplay the economic risks. They are in the business of retailing stocks. Frank discussions of risk are generally off-putting to potential customers.

7. The stock market could get even more volatile. Why? Billions of dollars in options contracts on the S&P 500 and other indices are outstanding. They represent bets placed on the assumption that the averages simply could not drop to current levels.

   Now that we are at unexpectedly low levels, the dealers who sold all those bets must make sure that they are hedged in the event they have to pay off on winning, bearish bets.

   How will they hedge? Generally, by selling the underlying stocks upon which those bets are based. That could mean increased selling of stocks by large banks and brokerages on down days. Conversely, if we get any sudden rallies, the dealers will have to go into the market and buy the underlying market to hedge their exposure. Either way, expect big moves in the days ahead.

8. It's not good news that reasonable people are even talking about the Great Crash. It's not bullish that great investors like Warren Buffett and Robert Wilson are trying to warn people off stocks. We don't know how the economy will out, but let's not kid ourselves -- the Comp has never cratered like this, and the rest of the market ain't looking so good, either.

9. Ignore those who calmly assure you to "hold for the long term" -- without a clue of what you own or your financial needs. You should hold only the best companies for the long term. By definition, most companies are average. Chances are your portfolio or fund is not filled with only the best.

10. The smartest global hedge funds I know are either in cash, government securities or short stocks. They have no respect for the bullish views of Wall Street, and are more bearish than the most bearish economists you see quoted on this site and elsewhere. You could argue that the hedge fund managers are wrong, that they will have to cover and that buying will support the market. The smart money has had the hot hand in the past year. Look for that to continue -- because their experience and desire not to blow up are valuable in this time of uncertainty and potential crisis.

11. President Bush will not save your bacon either. The prez is talking down the economy to get his tax cut through Congress. So far, he has managed to worry the public, but he has yet to get near-term tax cuts. Don't bet he will.

12. The public is still in denial about the carnage done to stock accounts and mutual funds. Inflows are still positive for the year. At some point, people will wake up to the fact that many stocks are not coming back. Then they will take some money off the table. It is highly unlikely that this bear market can end without significant mutual fund redemptions. That means more selling pressure ahead.

13. In times of financial stress, stuff happens. How do you think the market would react if anything happened to Greenspan? Or Bush? Pray nothing does.