Investors have few spare tires left. Think of the image of a car on a bumpy road to an uncertain destination that has already used up its spare tire. The cash reserves of people have been eaten up by the recent market volatility.

Simply put, investors should own less equities, more bonds, more global investments, more cash and more dry ammunition.

Investors should invest on what they know. The biggest mistake is to invest on what they don't know.

Investors should be cautiously positioned as the global economy and markets face major uncertainties. The downgrade will be a further headwind to growth and job creation in the U.S.

After many decades of Disney movies, we have been conditioned to expect princesses to fall in love quickly with their charming princes and 'live happily ever after.'

It is hard to imagine that, having downgraded the US, S & P will not follow suit on at least one of the other members of the dwindling club of sovereign AAAs. If this were to materialise and involve a country like France, for example, it could complicate the already fragile efforts by Europe to rescue countries in its periphery.