Alan, lets assume a worse case and say the index drops a further...

Alan, lets assume a worse case and say the index drops a further 1000 points.

Firstly the probability of this occuring given current economic indications would be very low. However, there would be value at this levels and with the money that is still available for investment, it would not remain there for long. Infact, it would trigger in my view an aggressive move upward.

The healthy solution is:
What we need is consolidation at these levels, plus or minus 200 points. for a six month period. This will support current stock prices and give punters time to reestablish confidence. Remember that the median return for equities is around 12% pa and we are already down 8% this FY