In other words, things are tough and could get worse, but the market has been here before. To read the whole piece, click here.

In the long run, I believe the way you will make money in the market is the way investors have done it for over 200 years - investing in businesses that grow earnings.

Don’t Pack Your Bags Just Yet… There’s Potential In U.S. Large And Small-Caps Alike

Despite the pervading smell of desperation in the market at the moment, you don’t need to buy shares of Accra Brewery Company, Tunisair, or Diner’s Club del Ecuador to have a prayer of making a profit.

Instead, look for stocks that could rebound in 2009. There are so many that have suffered a beating, the list could be extensive. And when you do, first look at the biggest and best companies in their fields - ones who’ve experienced market downturns before and have stood the test of time.

For example, consider Wells Fargo (NYSE: WFC) in the financial sector.

Take a look at biotech giant Genentech (NYSE: DNA) in the healthcare sector.

Cast your eye over Microsoft (Nasdaq: MSFT) in the technology space.

And as the economy recovers, companies that should fare well include McDonald’s (NYSE: MCD), Caterpillar (NYSE: CAT), Costco (Nasdaq: COST), and ITT Corp. (NYSE: ITT).

Don’t neglect the small-cap market either, though. Small-cap stocks have a history of leading the market out of a downturn. You just need to be careful which ones you pick, as it can still be a volatile sector - particularly in a fragile market.

Companies with revolutionary products include Accuray (Nasdaq: ARAY), a long-term position in the Xcelerated Profits Report portfolio and ViroPharma (Nasdaq: VPHM), which is part of the portfolio in my small-cap healthcare service, Access (for more information on Access, call our VIP Services Team at: 888.570.9830 (within the U.S.) or 410.454.0498 (from overseas).

No Pain, No Gain

Currently, the pain train is barreling down the tracks at full speed and we’re all aboard for the ride.

It’s a bumpy and uncomfortable one, for sure. But it will eventually hit the brakes and pull into station. And when the markets calm down and things return to some sense of normality again, you’ll be glad you invested in stocks that you’re familiar with, rather than exotic investments that are often more trouble than they’re worth.

My colleagues Karim, Jim, Lee and I have all been hammering home this point for a few months now. But it’s crucial that you don’t get wrapped up in the hysteria and make poor decisions now that you’ll pay for later.

Simply put, get ready to buy good stocks on the cheap. I know it’s scary now. But this climate won’t last forever and normal order will be restored. That has been the case for over 200 years.

And rest assured that no matter whether times are good or bad, stick with us here and we’ll help you every step of the way. Better yet, join us at the Xcelerated Profits Report, where we’ll not only explain various situations to you, but show you exactly how to profit from them with specific recommendations, too. We’ll get through this together.

Meantime, thank your lucky stars that you’re not overweight in Icelandic stocks.