I am not too concerned with a possible recession. At this point, I have reallocated my portfolio for 2008 and am bearish on small caps and bullish on VEIPX.....mostly because it is large cap and likely to weather any bad financial storms. I also like the dividends, and appreciate the low expense ratio.

Sure it has some large financial equities like C, BAC and JPM, all which are in the red, but as a long-term play, these will certainly recover as well.

After the capital gains and dividend distribution in December, the NAV has not really rallied, but I feel very confident that VEIPX will see a nice pop in the later part of this year.

In the meantime, I will continue to average down and increase my position until I begin seeing a recovery, at which point, I'll reevaluate my contributions to this fund.