Investing in turbulent times

Starting with microfinance problems figuring in Andhra Pradesh, Telecom controversey taking toll of a ministership, Bribary cases in Housing finance companies getting highly placed officers under CBI custody, FDI scam in hospitality space and now mid-cap space getting battered for SEBI barring 4 firms, enough bad news is following one after the other. When markets are plunging, What is the wise action?

Holding cash? or remain investing?

If investing, how much, how long, when, what ?

Contrary to what has been made to believe, IMF has come out openly accepting the chance for a double dip...

have a judicious mix of assets. Shakespeare in Act I, Scene I of Merchant of Venice makes Antonio speak thus:
"

...... I thank my fortune for it,	44
My ventures are not in one bottom trusted,
Nor to one place; nor is my whole estate
Upon the fortune of this present year:
Therefore, my merchandise makes me not sad".