Bill Gross, Pimco CEO, says the current crisis is due to three things: deleveraging (unwinding massive debts), reregulation (too much government intervention) and deglobalization (every country acting in its own best interests).

Gross thinks the investment world has "changed almost overnight." He no longer thinks investors should be primarily in stocks. He has sold every stock in his retirement portfolio. Now he's holding municipal bonds and corporate bonds… Remember, Gross manages the world's largest bond fund, Pimco, so a world where bonds are the popular investment is very advantageous to him.

Peter Lynch, former manager of Fidelity's Magellan Fund, agrees that corporate bonds are popular, but he thinks stocks are better… But you've got to have a long-term view. He expects to hold for five, 10, or even 15 years as corporate earnings recover.

Lynch urges investors to "buy what you know," the same advice he offered in his famous book One Up on Wall Street. Pick several companies that you're familiar with and watch them. When they become attractive, buy.

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Learn about an investment that made Gross four times his money.

Crux note: Peter Lynch's One Up on Wall Street is one of the all-time great investment books. It's an easy read, and the message is clear… Use what you know to beat Wall Street. He urges people to use everyday experiences and knowledge to pick stocks. Click here to read more about Lynch's masterpiece.