From recommending different products to rethinking their risk management strategy, some financial advisers say they have changed their approach in the wake of last year's market slump. Indeed, many retail investors remain on the sidelines of the stock market, with assets in equity funds only half of what they were in late 2007 before the economic crisis began and the market lost 56% of its value.

"We have to be proactive as far as a new strategy, and that strategy certainly isn't, 'Hang in there,'" said Dennis Reeve, PrimeVest Financial Services' investment program manager at Lake City Bank in Warsaw, Ind.

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