I see tons of opportunity in absolutely beaten down stocks with clean balance sheets right now. In fact, I don't recall seeing as many ever. Even if you assume the the U.S. economy slows further (which is a rational assumption), these stocks are priced cheaply absent some major calamity of a scope and scale that will put us in our shelters, locked and loaded - and that's not very likely. I'm talking about companies with clean balance sheets, that can retire their debt without breaking a sweat if need be, and that have the worst already assumed about their prospects for the next 12 to 24 months. The key is to find companies that are not leveraged with debt, and can survive even a relatively severe 12 to 24 month shit storm without having to borrow money to finance operations. I think it's important to get some international exposure, also (though I'd be leery of India, Mexico and the Gulf States), and it may be time to take the leap into high yield junk bonds just to balance the risk/reward equation. Muni bonds are looking nice, too.