The old adages about investment – run profits, cut losses, keep costs down, reinvest dividends, stay invested – survive for a reason. They have been proven right, year in, year out.
Stay invested, or increase exposure, in equities esp in stocks that consistently payout good dividends.
Think about investing in Jappo equities, and soft commodities’ plays (Olam?). Olam’s debt looks tempting.
Update: Interesting point. Richard Bookstaber once attributed the evolutionary success of the cockroach to coarse decision rules: it ignores most of the information around it and responds only to simple signals. Investors do something similar when confronted with hopeless complexity. They boil it down to a binary question: disaster/no disaster. Then they ignore all the idiosyncratic inputs and ask: what does experience suggest the probability of disaster is?
http://www.economist.com/blogs/freeexchange/2013/01/markets-and-cliff
