This is one of those markets where cash is a huge asset.

So many good investments can be had at a bargain price right now. For example, the entire mortgage/forclosure/financial market crisis has put thousands of real-estate properties on the market at the best prices in years. If you have access to cash, you can make a fortune, because this is the time to "buy low." These kinds of buying opportunites did not exist a few years ago when real-estate was booming --- that was the time to "sell high." A lot of people have that backwards. They get attracted to an investment when it is booming, which is really too late. They jump in at inflated prices, then as soon as it tanks, they panic and jump out.

Do not overreact to short term changes in markets. The stock market swings a week ago are a great example. You had a couple days of HUGE drops in the market. If you panicked and sold on Wednesday, you missed the gains on Thursday and Friday. You effectively locked in your 8% losses from the first part of the week and missed the 8% gains of the last half of the week. If you just planned your strategy before we were in a crisis, and held steady through it, you came out almost exactly even. If your strategy included faith that the market will do well long term, and included a plan to have cash ready to buy on dips (instead of sell on dips), you came out ahead.

I personally think real estate in my area of the country is going to always recover because this area is an engine of job growth and more people always come here. Prices are way down now because they went so high during the boom. I'm thinking about investing in some rental properties now if I can find some with the cash flow to be self sustaining until the next boom. The problem is cash, and that is what this whole financial crisis is about. My credit union is not processing any real estate loans at all right now. Without access to credit and without huge piles of cash money sitting ready, you cannot take advantage of opportunites like this. If the credit sqeeeze did not exist, these prices would not be as low as they are, and without more credit coming into the market, no one will be able to step in and take these properties off the market, even at bargain prices.

Bottom line: In my opinion, this is a great market for opportunites, if you have the stomach for it, and access to cash or credit.