Instead of cutting your overall exposure to the stock market, shift into less risky types of shares. Swap some or all the money you have in emerging markets stock funds, for example, for a conservative blue-chip foreign equity fund like Dodge & Cox International Stock.
Or cut back on a small-cap fund and make up the difference with a blue-chip U.S. fund like T. Rowe Price Equity Income. The changes may lessen the damage a bear does to you while keeping you in the game.
NEXT: Work a few more years