@Advocate,
I don't react to one day or one week fluctuations in the market. I look at the percentage/$ loss to react. Most times, I just make minor adjustments to my mix of funds with the idea that those adjustments are more-or-less permanent for the future.
Let's face it. Most people's retirement is invested in the stock market. Even CALPERS, the largest stock market investment group stays active in the markets. If they go broke, everybody else have gone kaput!
We must stay confident in the US economy; that's the only thing that we have any hope for.
If the US economy goes, so does the world's. We have no other choice.