At a time when almost nothing is profitable, investors are forced to sit on a lot more cash than they are used to. The flip side of the stock market's worst rout is that its valuations are getting cheap, creating attractive buying opportunities. The question then becomes when is a good time to go in again.
"It is a balancing act. Long-term investors should be sitting with above-average amount of cash but at the same time, having a plan to deploy it over the next 12 months if the bear market intensifies," said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
While there are so many uncertainties that could drag down stocks further, they do offer attractive valuations. The forward price-earnings ratio for the S&P 500 fell to 13.57 on Wednesday, the lowest since March 2013.
"This is an opportunity to look for potential buying opportunities and follow them, looking for an attractive entry point. In particular, tech and emerging markets may present some opportunities," said Kristina Hooper, chief global market strategist at Invesco.
"Most importantly, investors should not panic. Once a stock market enters bear territory, most of the loss has already occurred. Selling now merely locks in losses," she added.
For billionaire hedge fund manager David Tepper, it's already time to buy the dip. He told CNBC on Monday that he's nibbling at some stocks after the market's move lower.