As we face speculations about a coming crisis, how should investors respond?

Just about every investor acknowledges the risk when investing in the market, but whenever bouts of volatility hit and headlines scream blood in the markets, logic flies out of the window and their flight or fight mode kicks in.

Companies and countries have used markets for years to raise money from public investors. In return, investors receive compensation for the risk they take. But not all companies - or countries - are the same.