I would suggest you add up the relative percentages of U.S. and foreign equities in the funds you propose to see what percentage of your equities is tied to the faltering U.S. economy. You may want to consider adding a global stock fund like T. Rowe Price's PRGSX that gives you some exposure to emerging growth markets like Brazil and the Middle East where there is no recession. I can understand your conviction about G.E., but it got progressively cheaper last week. I think there are better opportunities in small- and mid-cap stocks.