One of the best things about blogging is the instant responses we receive. There are many times you have to be thick skinned when receiving criticism or just tolerant of the foolish people who are either rude or unknowing.

This brings me to Mr. noitall (small 'n' his choice) and the following commentary which followed my recent post $700 billion is real money!

"Well, maybe I was labeled a cynic about 2 years ago when I said the Fed is in a "check-mate" situation, where they will have to choose between saving the stock market, real estate market, or the dollar, but it most likely fail at all three. I don't think I am a cynic, just a realist, and it looks like I was right. Another thing I will say is massive greed, ignorance, arrogance and our willingness to believe in fantasies allowed this to happen. Maybe when a "cynic" questions some of the well known "facts", like the "buy & hold" theory, people should listen & give it some thought, before they believe the "historical data" they are given."

Mr. n and I often find common ground and he is telling the truth when he writes that two years ago he predicted the speculation and down market we are faced with today. While I must say that I find his view bleak, it has to be said also that people should be better prepared for poor markets and tough times.

While Mr n. is correct today and maybe tomorrow, his bearish outlook may not hold true next week or month or year. He does not mention the folly of straight-line analysis, but I am sure he would agree that good times do not necessarily follow good times and for the same reason bad times to not proceed in a linear fashion either.

For the fifty million Americans with 401(k) plans, these are troubling times. The turbulent markets and steady stream of really bad news have caused assets in these plans to plummet.

So what should investors do to protect their retirement nest eggs?

This question, endlessly debated by financial pundits, indicates a fundamental misunderstanding of both 401(k) plans and investing.

By their very nature, 401(k) plans are long-term investments for the vast majority of those who have them. Distributions cannot be taken without penalty until you reach age 59 and a half.

The focus of plan participants should not be on what happened to the value of their plan assets on Monday. They should be concerned with the money in their plan when they will start taking distributions from it. For a 35 year old, this is more than two decades into the future.

Speculators react to short-term volatility by buying and selling. Long-term investors focus on their asset allocation and staying the course.

If you have the right asset allocation, and you are properly invested, the current unstable market conditions should not cause you to stray from your course.

Warren Buffett or James Cramer, who do we have more faith in? Is that a serious question? Probably not. I have been told that Cramer's TV show has 17 million viewers. I wonder how many people would tune in to hear what Warren Buffett has to say. Indeed, Mr. Buffett might make for very boring television. We have even noticed here at BloggingStocks that when Cramer's name appears in the headline, the stories seem to be more popular. And while Buffett's name certainly attracts attention, it does not seem he is as popular.

Comparing the two noteworthy investment gurus reminds me of the saying: Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. Cramer throws out dozens of picks and pans every week. Tracking all his commentary has turned into a web sporting event of sorts. When he changes his mind, I can only guess that those hanging on his every word get dizzy. I suppose that with Cramer, followers might get to eat on some days and on some they don't. I do know he has made some good calls. He has also made some unfortunate ones.

I expect the Dow Jones Industrial Average (DJIA) will continue its upward trend in 2007 although not by the same margin that it did in 2006. On the other hand, I expect The Dow Chemical Company (NYSE:DOW) to beat the DJIA and be one of the success stories of the year. I outlined many reasons for this in Dow Chemical: a solid pick for 2007. Three weeks have passed since this story was published, but I am feeling even better about it today than I did originally.

I have already outlined the fundamental financial data, stock buybacks and dividends, but there is another trend that will contribute to stronger returns: The fall in oil prices, a major cost component in many of its 3500 products, is down by 30%. This should be a very positive influence on DOW's bottom line during the next few quarters. While lower oil prices reduce product costs, lower overall energy prices will also contribute to profits because DOW has major infrastructure as an old line company. Unlike services companies and Internet companies that keep plant and operations to a minimum, companies like DOW pay a penalty when energy prices go up and receive a benefit when they go down. It is as if they were running a brokerage account with margin leverage; the good times and bad times are exaggerated.

We have already witnessed James Cramer do an about face on technology stocks and he has started to turn more Bearish on the overall market after being all hyped up just two weeks ago. My picks will haunt me all year. I did not make one pick I could not live with, this year, and for the next ten.

Check out my other posts for BloggingStocks here. Be sure and read You don't have to be 007 to find the best picks for 2007!

Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm.