Welcome to the end of another week. I for one am really happy Friday's finally here.

That was some nice drop in the market yesterday, wasn't it? Are you doing anything about it? I hope not. My hope is, you have your portfolio allocated according to your current station in life and that days like yesterday are not too different from any other day.

The market will go up and the market will go down. If you've spread your risk out over various security types then you should sit tight and not worry about down days like yesterday any more than you should worry about up days where you could have made more money but didn't.

Think about that for a minute. If you're well diversified, you're not only not exposed 100% to downturns like yesterday's sell off, you're also not able to take 100% advantage of the days when the bull rages. Whenever I talk to people, young people in particular, their biggest objection to asset allocation strategies is they feel like diversifying their portfolio is akin to watering it down.

What they don't realize, and what's key to understanding asset allocation, is that this watering down process removes more risk than it does performance. Yes, you do give up some performance, but in return you get a far greater piece of mind. So much so that you'll still sleep well the night after a day like yesterday.

So if you're well diversified and allocated, days like yesterday are unlike any other day in the market. Relax and try to enjoy the ride. If you're not well diversified and you don't have your assets well allocated to put off risk, then have another cup of coffee. Sorry you didn't sleep well last night. Hopefully the bulls will fight back today so you can enjoy your weekend as much as the rest of us.