Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

21 ways to stomach a sour market

Feel like you're getting nothing but lemons from the stock market? Allow us to introduce nearly two dozen recipes for lemonade.

1 of 21
BACK NEXT
1. Simplify your portfolio
For you, perhaps, "portfolio" seems too orderly a word. "Junk drawer" might better describe that disorderly jumble of fund and brokerage statements your future depends on. You've long wanted to streamline but were put off by the taxable gains embedded in many of your holdings.

Well, now is your chance. The market's 20% decline has shrunk many gains and probably also handed you some losses to offset against them. That makes this a great time to eliminate duplicates (you need only one S&P 500 indexer, for example), unload funds you don't understand and create a simpler portfolio.

For a model, see "The only 7 investments you'll need." Or, for the ultimate in simplicity, boil it all down to a single target-date retirement fund, essentially a lifetime investment strategy in one portfolio.

Two such funds - one from Vanguard, the other from T. Rowe Price - are on the Money 70, our list of recommended funds and ETFs.


NEXT: Ditch your energy stocks
Last updated August 16 2008: 4:37 PM ET
More Galleries
10 of the best beaches near airports Wait out your layover in the transit lounge? Or grab some sun, sand and surf? More
World's Top Employers for New Grads For an exclusive CNNMoney list, research firm Universum Global surveyed business students at colleges around the world to see where they most want to work. More
A White House press briefing as told by CNN's sketch artist The White House started banning cameras during some briefings, so CNN sent in sketch artist Bill Hennessy. More

Special Offer