Correction Protection.

Doug Kass is a hedge fund manager, a columnist for the Street.com and an occasional commentator for CNBC's "Fast Money" program.  Last night he made an appearance on that show with part of his playbook for correction protection.  These are.

Maintain above-average cash positions:  Be less concerned with a return on capital and be more concened with a return of capital.

Buy protection:  For those so inclined option positions as a hedge are still cheap even with the events of the past several weeks.

Diversify:  For most of us it is probably not wise to have more than 15% in any one S&P 500 sector.

Fundamentals matter, not price action on stocks:  Avoid momentum or high-octane names.  He used Netflix {NFLX} and a few others as an example of this.

Here is a link to the CNBC segment:  Kass: Fast Money

*Long ETFs related to the S&P 500 in client and personal accounts.  No direct positions in NFLX but it is a componenet of several ETFs we own in client and personal accounts.