A fellow blogger at http://invest4today.blogspot.com mentions that despite the bearish economic sentiment in the overall market, there are several sectors that continue to outperform. Identifying these sectors should be a priority to every serious individual trader/investor.
The problem when it comes to portfolio management, in a lot of cases, is that we have some "fetish stocks" that we stick to and even though it's a good idea to get to know your favorite stocks inside and out and adapt your trading to them, it is also dangerous to fall in love with them... I'm sure you've heard this hundreds of time but you know what? I'm sure you're still doing it!
So, the bottom line is you need to step back and get a "bird's eye" view of the markets. Right now the market is getting more and more bearish thus you need to adapt. If you are an investor and are not interested in trading thus eliminating the "shorting" option I suggest you consider one of the sector Big Ben is referring to which is the Agriculture sector like Monsanto (MON) but mainly the consumer/non-cyclical sector like Pepsi(PEO), Coke (KO) and Anheuser-Busch Companies (BUD). Just look at the action these stocks alone have had while the markets were plummeting...
Once again I recommend you do your own due diligence and don't forget the two rules on trading and investing: ( I can't remember where I heard it first but it's a classic...)
Rule #1 Protect your capital
Rule #2 Don't forget rule #1...