The stock markets have had lots of trouble rising in this extremely unstable environment.
As a result of this widespread instability, I have been bolstering my downside protection for some time now. This includes pruning any companies that I question their fundamental financial ability to operate effectively in an economic downdraft.
You don't have to turn 180 degrees this second, but it is a good time to start turning. This includes adding or expanding defensive positions. Also, adding positions in companies whose "fundamentals" and business outlook have unique strengths. Be careful about following the crowd. The crowd may be comfortable to follow, but presents unique challenges.
The Wall Street talk of "risk on" and "risk off" makes me puke. How you deal with the market isn't a toggle switch. The better analogy to the market is to deal with it like a dimmer switch. If the bulbs are getting too hot, turn the dimmer back a bit.
Everyone will feel the downdraft in the market. This is no escaping it unless you go to all cash and we know that isn't the right thing to do. You have to make two right calls - when to get out and, then, when to get back in. Doing that high wire act has little chance of success. Don't fool yourself.
Remember, there is always a difference between market perceptions of companies and the true economic value of companies. If a market participant doesn't understand the difference, it would be good to get off the baseball field and into the dugout. That will avoid a line drive to the head.
