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Investing in a Rough Market
Tuesday January 22, 5:19 pm ET
Tips for Investing in a Rough Market


Those who oversee other people's money often urge investors not to panic when the market stumbles as it has in recent months and particularly since the start of the year. Setting aside emotion when making investment decisions can be difficult but can also ultimately lead to higher returns, experts say.

Recommendations for surviving rough markets:

-- Consider your investment timeline. If you don't need to draw on investments for the next several years, leaving them in place rather than pulling out often makes for better long-term returns.

-- Examine the risks each investment type might face. If changes are necessary, make them gradually.

-- Think about selling holdings that have done well to put money into areas where bargains can be had, such as beaten down but still-sound investments.

-- Set up a schedule before shifting money in or out of the markets, so that changes follow the calendar and aren't subject to the emotion of the market's daily ups and downs.

-- Build a diversified portfolio to guard against big losses from a single investment.