A few more weeks of market winter?

• No new trades.

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I feel like Bill Murray's character in the movie "Groundhog Day," reliving the same experiences -- in this case, the market dropping -- every day.

Oh, there was the one-day, Fed-driven surge, but that had as much to do with short-covering as it did with any real belief that Chairman Ben Bernanke had discovered the cure to the credit crisis. Bottom-line: Investors remain very nervous about the health and liquidity of the financial sector, as well as the slump in the overall economy.

So what does an investor do? Well, as I suggested a couple weeks back, the best course of action at this time is to simply sit in cash. Don't be afraid of missing out on the next big move up, at least not yet, as there is nothing other than oversold technical readings to suggest that a bottom has been put in place. Holding on to cash, or increasing your cash position by liquidating some losers, is not a bad route to go. Nobody ever got crushed by sitting on cash.

Chase the heat?

Another option would be to chase the hot stocks: metals and agricultural companies. But valuations in both groups look tough to defend. Their momentum might carry you a bit further, but if and when the major disappears, these stocks could come down hard and fast. In other words, if you invest money in these stocks, stay alert and be ready to take profits quickly.

You could also look to invest overseas. Not a bad choice, especially for a modest percentage of your total portfolio, but here again if the U.S. market remains under water and the U.S. economy slips into a prolonged recession, most big foreign markets are likely to slump as well.

Finally, you can start to nibble at some beaten-down stocks in anticipation of the day when the clouds lift and the story line changes. That day might be a ways off, but believe me, this too shall pass. When it does, the cream will rise to the top. Even if you don't think it's a good time to start buying just yet -- and I can't say I disagree -- you should at least be doing the research now so you know the names you want to hold when conditions finally improve.

Send me your dogs

I would be interested to hear some of your thoughts on this subject, and particularly which beaten-down stocks (they must be at least 30% off their highs) represent good long-term value to all of you and why. If you have a name or two, feel free to pass them along in an e-mail.

In the meantime, try not to let the daily declines get you down. Here's a thought: Put down the Wall Street Journal for a few days, turn off CNBC and spend some time with your friends and family. Enjoy what is most important in life, and don't worry about missing anything much in the markets.

After all, you know the story already. Down, down, down.