Volatility cuts both ways — something investors tend to forget in the gloom of a downturn. Stocks could just as easily and just as fast bounce back as the past 8 weeks have shown.

For my own personal experience, I went into the market turmoil with a 60% allocation in stocks and 40% in fixed income which was exactly my target asset allocation. The market turmoil has devastated my stocks to the point where my allocation has shifted the other way – I’m now 60% in fixed income, 40% in stocks. So, when I set my emotions aside, I know in my brain that I want to increase my equity holdings in order to return to my target 60/40 equity / fixed balance.

I’m not so much of an index investor. My preferred method is to choose some well-managed, profitable companies who just happen to be traded down to a low P/E ratio. That’s what helps me to sleep at night. It would likely be very different for everybody else, that’s what makes us all individuals and everybody’s different way of thinking is what makes a market. But in my opinion, there is no better time to pick up SOME well managed companies at a CRAZY low P/E ratio… Many of my favorites are in the 5 range! And with Q1 reports coming out, these earnings DO factor in the collapsing economy!