by KYW's Salil Gutt

The first quarter of 2008 is one investors would sooner forget. Both the stock and real estate markets declined significantly in an event last seen in the Great Depression of the early 1930's. History has shown this storm too will play out as buyers eventually swoop in for bargains and confidence returns.

There are lessons here for all investors regardless of age. 

First. Selling in a panic is a bad idea. Always keep the percentage of your portfolio in stocks or real estate that makes you comfortable and the ability to hold tight until the dust settles.

Next. Ignore the pundits who say you must always have a high percentage in stocks as stocks outperform all investment categories in the long run. That is true but half of all money decisions are emotional. Besides, it's easy to talk when its not your money at stake.

Finally. Recognize that financial markets fall sharply for some reason or other every few years. Keep increasing the bond portion of your portfolio as you get older. Your age as a percentage of bond holdings is a good start.