Stock Market Jitters - Time to start looking for investments on Sale

It's that time again - FEAR and uncertainty is sinking-in after the stock market had a fast & crazy run-up for the past few months. Again, my friends & aquantances are having fear & uncertainty - hm.. smells like time to look around for investments on Sale ;P.

Another friend of mine, PL who's in Singapore, is also going "Woohoo! I'm going to get me a piece of that action. " as she said she "missed" the fast & crazy run-up. Heheh - the total opposite of the Fear factor, greed :D.

Me, I'm in blah blah land (as opposed to la la land ;P) - ie. Neutral (neither estatic or scared shitless) because I believe:

1. There will always be ups and downs in the market.
2. Money can be made when the market falls (even without shorting stocks) by selectively picking stocks of companies with good fundamentals and preferably history of consistent dividend payouts which are less than their earnings (if dividends being paid out are more than earnings consistently, something doesn't make sense, right?)
   
3. Money can be made when the market runs-up by selective profit-taking and divesting into bonds, REITs, etc AND/OR by riding the latest / fastest trend wave.
4. In any case, there is always a need for a "big picture" approach like Asset Allocation + exit points before getting in - not JUMPING in with >80% of my capital.
5. Neutrality allows me to be unexcited and think things through a bit, a definite plus for investing but may be too lacksidal for trading.

Mind you, I am too human at times and do get caught-up with things too, thus, ohm... ohm... need to neutralize.... :D.

By the way, anyone cares to share their views on the coming spike in inflation or deflation? Me - I'd bet on crazy inflation because of simple reasonings:

1. Printing money like crazy... hmm..
2. So many people, so little basic resources to go around. Yeah, commodities are now looking down-ish again but I'm betting population growth > resource growth in the mid-term (5 years)