From difficult times, evolve great ideas and opportunities. There are many reasons why you should be cautious in this kind of unprecedented market cycle. But sometimes, if you are creative, you can find a way to fill a void or find a new opportunity while others are retreating. Just think about the very money managers and hedge fund managers that predicted the sub-prime crisis. You too could capitalize on a great idea if you put your mind to it even in this market.
To do this, you must first clearly have an understanding of how business in a particular sector works. For instance, if you wanted to create a business that would attract foreign investors for real estate investments since US banks are being pummeled with mortgage loss write-downs. You would need to research as to how these investors are being attracted now, understand what the needs and protections are for them, create a business plan and figure out what you can do that is different from the others. Meeting with an attorney on the front end of your endeavor will also save you a lot of time and headache later. They will help make sure you are creating the right type of entity which can shield you from personal exposures of liabilities and taxing inefficiencies.
The key is to think outside the box but fully understanding everything you can about the box first!