5 Ways to Survive the Rest of the Year

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That two most pressing questions for investors right now are: What's going to happen next? And what should we do about it?

Although pundits are spewing forth about an "improved" outlook for the U.S. economy, history tells us that we're more likely to see a stock market correction in the near term. During the last half a century, stock market rallies that follow horrific declines like we've seen in the past 24 months are typically followed by a secondary decline of 14% to 50%. (See 10 Reasons the Market Could Crash in October.)

What will happen after that is anybody's guess. According to a study by Ned Davis Research, any secular bull market that followed a recession in the last 100 years resulted in gains in excess of 60% during an 18-month stretch. In situations where that rally was actually the catalyst for a resurgent economy, stocks averaged 110% over the next 36 months.

But we also have to remember that the bear market that started all this grew out of the worst financial crisis since the Great Depression.

Next: Hope for the Best, Prepare for the Worst