Markets drop. What to do now?

The best answer I can give you is that it isn't over. How will you know when it is over? You will know it is over when you are tempted to buy stocks again. When will that happen? Not for a while. Will the market bounce back up over 10,000 on the Dow? No, not for a long time. It takes time to rebuild trust. We are lucky everyone still trusts a dollar is worth something around a dollar. It could be a lot worse. The rest of the world does believe in us and has hope we will be able to turn things around. They are betting on it.

You will need to watch where your money is going on a regular basis and ensure you will have enough for at least 1 year. You might have to get a second job. This is the time to be looking for one before there are more unemployed. Those that have cash will be OK but you need to take responsibility to help those without assistance. Charities will need more, not less as the numbers needing help will increase.

For those who have cash, start buying reputable companies with proven track records when the Dow breaks to 7800 or lower. That is the time to start to take some risks. Where should you put some of that money to risk? I would invest in Green companies which are either solar, wind or other alternative energy companies as those are the places Obama has as he #1 priority according to his debate statements. It will take being centered and those willing to tolerate risk. If you can't sleep at night, then you shouldn't be investing. Good luck.