Rare advice right now, in that it’s not dire, pessimistic or even gloomy.

Larry Kudlow calmly says ‘Don’t Panic’. In fact, he says “fear can be overdone.” Really good point.

Market corrections come and go. They are not the end of the world. Most times they are actually healthy.

The S&P downgrade is a fiscal warning, not an economic event. And the growing fear of U.S. recession may not pan out. There are still plusses out there, believe it or not…

And energy prices are coming down, with oil moving toward $80 a barrel. Oil analyst Peter Beutel points out that gasoline prices in the last two weeks have fallen by 35 to 40 cents. Adding in other oil-related savings, the energy-price drop amounts to a $100 billion tax rebate for consumers.

Plus, corporate profits will continue to rise while business balance sheets are pristine and chock full of cash. Consider the combination of solid productivity, moderate wage rates, and falling commodity prices. These are all plusses for the economy and stocks.

So in light of all these factors, it seems to me that the economy can hold up.

Whew. Take a deep breath.

Getting our debt and spending under control is very important. But the fact remains that warnings from S&P, and even lesser warnings from Moody’s, could spur Washington into taking more aggressive action. So could the market sell-off itself.

So take heart.

The American free-enterprise system can weather these shocks, and I believe favorable political and policy changes are on the way. It will take time. But time heals. Longer-term investors would do well to think about the many stock market opportunities that are opening up as a tough correction runs its course.

Time heals. Use it well.

Sheila Liaugminas

Sheila Liaugminas is an Emmy award-winning Chicago-based journalist in print and broadcast media. Her writing and broadcasting covers matters of faith, culture, politics and the media....