DURING THE first quarter of 2008, bond markets went haywire. With investors increasingly worried about defaults, the average high-yield corporate-bond fund lost 3.6%, according to Morningstar.

HIGH GASOLINE prices are infuriating motorists, but for investors in energy stocks, the rocketing cost of fuel has been a blessing. With profits growing, shares of oil companies have been climbing impressively.

SEEKING TO attract new investors, fund companies have brought out numerous specialized choices. The fledgling funds include Claymore S&P Global Water and T. Rowe Price Africa and Middle East. This is not the first time the industry has introduced narrowly focused funds. During the bull market in the 1990s, dozens of Internet choices appeared. In the 1950s, investors could buy the Television Electronics Fund.

IN THE RECENT market downturn, small stocks have been hit particularly hard. During the 12 months ending in March, the average small-cap fund lost 11.6%, lagging large-cap funds by more than nine percentage points. This is not surprising. In bear markets investors avoid small stocks, moving to big blue chips.

It is a troubling time for investors, with both the economy and the stock market seemingly in a relentless decline. Many investors are fleeing the turmoil, moving to super-safe United States Treasury bonds. But Treasuries provide only modest returns. For better results, consider the following rock-solid investments that are suitable for even the most conservative investors.

WITH STOCKS tanking recently in places like India and Brazil, investors may be cautious about investing abroad. But many experts say that this is no time stay at home. In an era when markets are becoming increasingly global, investors should put at least 30% of their equity portfolios in foreign stocks.

AS MORTGAGE defaults increased last year, the markets took unnerving turns. Panicked investors raced to buy Treasuries and sell securities that seemed to present risks.

WHAT ARE the chances that one of your funds will return 100% this year? Extremely slim. Few funds rise 50%, let alone double in a 12-month period.

THE WHIMS of markets change constantly. One year the crowd favors technology companies, and then the mood shifts and the next year investors embrace shares of banks.

MILLIONS OF investors have been racing to buy exchange-traded funds (ETFs). Like index mutual funds, ETFs track benchmarks, such as the Standard Poors 500-stock index. But ETFs trade constantly on stock exchanges, while mutual funds are priced once a day.