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
Best-loved cars in America These cars and trucks topped J.D. Power's APEAL survey, which measures how much owners like their new vehicles. More
America's most powerful cars A new 'horsepower war' has erupted among U.S. automakers and these are the most potent weapons in their arsenals. More
A sampling of beers being made with traditional Latin flavors A small but growing number of craft breweries are including passion fruit, Mexican cinnamon and other traditional Latin flavors. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.