Today the market did an about face going from up to down, to way down, with the Dow Jones Industrial Average ($INDU) losing 146 points or 1.1%. It's not the end of the world but cheaper than yesterday when I posted Who says the stock market is too cheap? In any event, making predictions is a fools game, and when asked to make one, J. P. Morgan (1837-1913) responding to a question about what the market will do, was quoted as saying..."It will fluctuate."

The chatter on Wall Street is about housing, sub-prime loans, default rates and rumors about Apple Inc. (NASDAQ: AAPL) reducing expectations (if not actual production) of iPhone sales. Never mind the rumors, never mind the chatter, just be selective and stick to fundamentals. In particular this may not be a time to venture into highly leveraged companies, or speculative stocks. Stick to basics, and the most basic to me is still energy. Two other sectors that should hold up are health-care / pharmaceutical companies and insurance companies.

If there is anything that was cheap and seems to be getting cheaper it is the unloved insurance companies. They have strong cash-flow, low valuations, pay dividends and very important in unpredictable markets -- they have recurring (predictable) revenue from millions of existing policies. I intend to revisit these in the coming days. Words to the wise for now -- reduce your leverage and think long term.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well. Disclosure: I do not own any crystal balls and have no current plans of acquiring one.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.