3 Ways to Recession-Proof Your Portfolio

With so many factors in play, it's hard to sit back and watch as the market unravels. But before making any rash moves there are some other steps to consider first.

Allowing market swings to dictate your investing behavior is a huge mistake, warns Stuart Ritter, a certified financial planner with T. Rowe Price. Selling at a time when stocks are beaten down guarantees that you'll lock in a loss. Keep in mind that historically, a massive selloff in the stock market means a recovery is to follow, says Danielle Hughes, CEO of New York-based Divine Capital, an institutional broker dealer. While it's impossible to pinpoint when that recovery will occur, long-term investors should have faith that it will eventually, she says.

In the meantime, stick to a long-term investing strategy and consider investing in target-date funds that automatically reallocate your 401(k) investments based on your age, not on market swings.

The Fed has already cut rates four times since September — and even more cuts are expected. That's why it's imperative to lock in CD rates immediately, says Greg McBride, senior financial analyst at Bankrate.com. "There's no benefit to holding out for a few weeks or months because the yields will only get lower," he says.