gfp: You should go 100% to cash and Treasuries. Let Buffett be your guide. While he sits tight you should follow his example. When he starts buying then that will be your signal to start moving to equities. Buffett always trumpets when he's a big buyer after a correction. He isn't sitting on $325 Billion for nothing. Fluctuating your portfolio up and down by small increments is more trouble than it's worth. Stay safe on the sidelines. Collect the 4-5% Sleep easy. Wait until there is blood in the streets. Then pounce like a Buffett.