The Fed cut rates, in intermeeting move today by 75 basis points for the first time since 1984. Congress and the administration are actually in agreement on the need for a stimulus package. This has lead traders to wonder, "what do they know that we don't?" This has actually caused more panic and selling in the market. How should one repond to these circumstances? Time to go shopping.
This is the most opportune point of the market cycle. When almost everyone agrees that the economy is heading for a train wreck. Goods, services, commodities get cheap and nobody's buying. I would not recommend putting all your money to work in one fell swoop, but if you've got some saved up for a rainy day....it's raining.
In the stock market, start dollar cost averaging into it. That is, purchase the same amount of a broad basket of stocks (exchange traded index funds) each month or every couple of months. In real estate, start looking for bargains and pick one up when you have the opportunity. Spend the next year or so refurbishing and getting ready for the turn in the market. In business, rent a store room and start picking up equipment on the cheap. For consumers, spend your money productively on home repairs, landscaping improvements, etc. Start visiting pawn shops, thrift stores and flea markets on occasion. Good stuff is about to show up there. Use downtime to gain education in something you're interested in. There's free education all over the internet. Go get some.
The train is in the station. Don't wait for it to start to pull out and join the clamor to get on. Find yourself a good seat now and enjoy a good book while anticipating the next leg of the journey.