Kenny & Jack,
You might have lost 40% in 2008, but if you continued to hold your investments and continued to buy them monthly through the EK provident fund, now 4 years later you are up money from 2007, more than you would have been had the market not crashed because you bought stuff cheaper in 2008 when the market was down.
If you cant handle that sort of volatility due to time frame or personal preference, put more in bonds/treasuries and less in equities. Going to cash is not the answer.
Its your money though and often emotion gets in the way of making the smart choices.