It might be hard to believe given how crazy things are right now, but the smart way to handle your portfolio today is the same way you should handle your portfolio all the time. Invest for the long run. Don't invest money that you'll need within the next three to five years, so that you can wait out downturns and enjoy the healthy positive returns that stocks have generated historically over longer periods of time. Invest in a way that takes maximum advantage of good times for the economy and balances against the ever-present potential for a recession or a bear market.
If you do that, you'll find your comfort zone!