My rule #1: Panic when others are calm, be calm when others are panicking. This rule served me well during my time on Wall Street – some of my best trading days occurred on days when “panic” was in the air. This rule applies to investing as well. As a long-term investor it is important to have a plan before the markets go crazy. Asset allocation is one of the tools available to investors to limit, to some extent, the volatility in your portfolio. Get your asset allocation in-line with your goals and risk tolerance – then let everyone else freak out when volatility picks up.
This article from Forbes does a good job of summarizing the recent market action and offers insight on strategies during corrections: