NEW YORK (CNN/Money) -
There is no shortage of things for investors to worry about.
Since hitting its 2004 peak on Jan. 26, the Nasdaq composite has fallen 11.3 percent, as of Wednesday's close. The Dow and S&P 500 both peaked on Feb. 11 and since then have lost 6.4 percent and 5.7 percent respectively. In addition, the mutual fund industry is beset with credibility questions and bonds are dancing with a prospective rise in interest rates.
What should you do?
Fix your mix: Regardless of where you think the market is going, it is always wise to keep an eye on the mix of your investments, measuring your tolerance for risk and retirement horizon against the diversification of your portfolio. You can do that here.
From there, you can start to examine where you stand in the major investment categories.
Stocks
Despite recent declines, most strategists seem to be sticking to their bullish ways. "This is a healthy correction, not the end of the bull market," said Ram Kolluri, chief investment officer at GlobalValue Investors.
What's hot, what's not: Nevertheless, even the most bullish don't expect a repeat of last year. For one thing, leadership has changed, with high-flying techs and small caps giving way to old-economy names (see more on which sectors are in the lead this year).
Safety first? And the bullish strategists could be wrong. For more dependable names in this rocky market, consider three safe havens, with above-average growth rates and moderate price/earnings ratios that have a relatively low exposure to market swings.
And even some large, widely held stocks offer good value right now -- see three examples.
Slip sliding away: Unfortunately, many investors, tempted by the recent jump in energy prices, may be trying to catch the momentum offered by oil and gas stocks. Some still offer additional gains, but others could burn investors. For the outlook on four top energy stocks,click here.
Bonds
This time last year, after a long bull market for bonds, it was near consensus that interest rates would rise, and that bond prices would fall. The strategists making that call were of course wrong, as interest rates have stayed stubbornly low. But that doesn't mean investors shouldn't tread carefully now.
Will rates rise? The first report of solid job growth -- whenever that will be -- could send Treasury bonds tumbling, pushing long-term rates higher, even if the Fed doesn't move on short-term rates until after the November election, as many suspect. For more on what could push rates higher, click here.
Will it hurt me? For a look at how a vulnerable your bond holdings are to a rise in interest rates, click here.
Mutual Funds
Fund investors have it doubly hard these days – not only do they have to worry about whether this latest correction will go on, but also whether they are in the right funds, especially in light of the trading scandal that continues to haunt many fund families.
Good candidates: A good starting point for finding funds to round out your portfolio now is the Money 100, hand-picked by the editors at MONEY.
Some fringe picks: One strategy is to go off the beaten path. The April issue of MONEY Magazine offers four top 'boutique' funds that have solid track records and have mostly sidestepped controversy. (click here)
From big to obese? Investors in Fidelity Magellan have another issue: Has it gotten too big to succeed? For investors in the renowned fund, MONEY offers buy-sell-hold guidance in the April issue. (click here)
Of course, if you're looking for a mutual fund to meet your own special set of criteria, you can always go to our Fund Screener to help you in your search.
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