I'm thinking of selling off my underperforming mutual funds and buying plain old index funds such as VFINX. I've read that only one-third of mutual funds outperform the market in any given year, and that it's never the same third, so index funds may be the way to go. Though, if you beat the market a third of the time you can still come out ahead if you beat it by a lot and then later lose to the market by only a little. I'm also looking at emerging market funds, like EOW which invests in Eastern Europe. Eh. I'm not sure what to do, and I don't trust any of the financial advisors I've talked to.
Update:
An article by Todd Zywicki reinforces my own thoughts about diversifying home equity... maybe I won't use my tuition reimbursement to pay down my home equity line of credit. Argh, the decisions....
I think that's a good strategy. Plus index funds from places like Vanguard charge lower fees. Over time, this can add up.