Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Downgrade as an Excuse...

I don't think current sell-off is caused by US debt downgrade. US debt was downgraded, so we should've seen sell-of of Treasuries first, right? But Treasuries are up sharply today.
No, I think that the main reason is a fear of returning recession. And I couldn't agree more, second wave of recession is coming. Unless we get saved by Fed again (QE3), there is nothing which can help economy. And I'm talking about world economy. US is just part of it. But very big and important part.
Another possible trigger is fall in commodities futures. Note, oil futures are down much more than stock market, percentagewise. Many speculators are getting margin calls and have to sell everything to come up with money. Of course, long term oil is going up in price, right? Looks like traders think so.
I'm getting less aggressive now. Just because too many people are bullish. That's a bad sign when market is tanking. We have blood on the Street, but we also need panic, everybody and his dog selling stocks forever. Isn't happening yet.
But I have to buy such drop as today. My analysis of what I did in 2008 shows, that if I bought all biggest drops on the way down, I would have made more money.
Today I opened position in Wells Fargo Advantage Income Opportunities Fund (NYSEMKT:EAD). Not for the first time. This fund pays big distribution. I buy it when it's more than 5% below net asset value and sell when it's more than 5% above NAV. Worked great so far. Doesn't mean that it would in the future...