I just wish that I had a better cash position right at the moment. It seems that every time one of these massive sell offs come I am weak on cash. If I had the resources I would be buying like crazy. In fact I am considering buying on margin for some equities that I know are particularly strong.
The few times that I have been able to cash in on this kind of a dip I have profited nicely. Equities are selling at bargain basement prices in many cases and if you felt they were strong to begin with this little blip isn't likely to affect their overall value. So on the rebound you have the potential of making a little money in value and I am inclined to shop for the dividend stocks as well so I often win twice in such cases.
In many ways it is a little like gambling but as with poker good strategy often makes you a winner even with a weak hand. All you have to do is figure out when to jump in. Major down turns like this one are classic opportunities if you have available cash that you can afford to sit on for awhile.
The markets will come back as they always have. Even after the Great Depression solid stocks hung around and eventually paid off for those who were patient and able to wait for the return to normal. Mind you I am not talking about day trading either. Stocks that you buy at times like these are ones you buy to keep long term. You can often buy stocks that you couldn't afford before the decline but now are within your financial grasp so if you act now when they go back up you gain the return in value making your overall portfolio worth more in the long run. If they also happen to pay dividends so much the better.
The old saw of "buy low and sell high" is really true and you can do it if you use these dips wisely. I can never understand panic selling but then I also really don't care much one way or another. If I win I win but if I lose I do so gracefully and let it go.
Anyway if you have ready cash that you don't need I would heartily suggest that you do some homework and pick some good solid equities that are selling way below their nominal values and jump in. They don't have to be Blue Chip stocks but they should have strong numbers and a proven track record and not penny stocks either as they are risky gambles.