Investing in my 401K and an IRA?

Whats happening currently makes no difference if you're investing for the long term. And thats what you're doing with a 401k and IRA. Never try to time the market with money you cant afford to risk, like retirement. What matters is your risk tolerance. You're young and you have decades to invest for retirement. By not investing now you are costing yourself money down the road. Invest as much as you can in both a 401k and IRA. As a rule of thumb put the same percentage as your age in bonds and fixed income and the rest in equities.