So the S&P has downgraded United States debt from it's AAA status. There have been other threads discussing why/when a downgrade will happen, as well as possibility of default. Instead, I want to know - where do we go from here?
How should the astute investor react? I think it's almost guaranteed that bond yields will increase. This should cause investors to go to bonds and leave the equity market. How should we, as investors, take advantage of this scenario to maximize returns?
I'm not interested in specific equities or predictions about how much the DJIA will fall - I want a plan of attack. What is the investor's ideal response to the downgrade?