What should investors do?

0 Comments | USA TODAY, March, 2008 | by John Waggoner and Barbara Hagenbaugh

The financial turbulence of the past few weeks -- capped by this week's collapse of Bear Stearns and the Federal Reserve's slashing of short-term interest rates -- has left investors and savers pondering a big question: What do I do now?

For savers, not much. But if you're a long-term stock investor, the Fed's move Tuesday should fuel long-term gains.

With the Fed cutting its target for the key federal funds rate to 2.25% from 3%, savers will suffer, says Greg McBride of Bankrate.com. Yields on bank CDs, money market accounts and money market mutual funds are closely tied to the fed funds rate.

The average one-year certificate of deposit yielded just 2.33% last week, the lowest in more than three years, and will likely fall further after the Fed...