Assets are more correlated to each other these days. Higher correlations are concerning because it is difficult for the investors to diversify. Now if one asset falls, the other falls as well, there is no where to run. It is a switch “on” or “off” economy. This correlation seems to have occurred due to high frequency traders trading many multiple markets and many investing strategies being similar to each other. Such higher correlations create larger swings in the price, as the actions feedback each other and create a cycle.

So what can investors do?

First, investors can invest in less volatile assets. For instance, investors can invest in Lending Club notes or other peer-to-peer lending, where there is not so many drastic movements. They can also invest in real estate, specifically certain parts of properties, through FundRise. These investment will not only provide a steady income stream but alleviate you from drastic swings.

Second, investors can buy real assets that do not fluctuate as much. They can buy some local land or property given that it is reasonably priced. Look around your local area, there may be good deals. Buy underpriced items and keep them until you can sell it for a profit.

Third, invest with roboadvisers. Technically, they should be well diversified enough that even the high correlations will not sink them. However, we still don’t know how they will perform when everything goes up and down together. But investing a bit of money will not be detrimental and will give you better diversification than anything else right now.

Fourth, buy precious metals. Buy gold coins and silver. Yeah, this is old school but it works. Just make sure to keep them safe.

Fifth, get other sources of income. The world is so unpredictable these days. Jobs come and go. Companies rise and fall instantly. Diversify your income stream. The good news is that the rise of the demand economy enables you to earn money in many ways. Yes, Uber/ Lyft have problems but you can drive time to time and save that money. You can rent out your spare bedroom on Airbnb and make a bit more money.

Sixth, cut expenditure. Yes, US economy runs on consumption. But this is the reason why we have all this mess. There has been excessive consumption based on debt. This is not sustainable. It is time to consume prudently. So cut down all things that you don’t need. Downsize the house, sell the gas guzzler, sell all the junk, less eating out, less cable…we can have a whole list.

Seventh, take care of your health. Medical cost related bankruptcies are quite high. A trip to the emergency room can easily wipe out your savings. So eat healthy, exercise, and be thankful. If you are believer, pray, give thanks, and be kind. As long as you are healthy, you are eliminating one of the leading causes of bankruptcy.

All these suggestions are not easy. But some action is better no action that can really jeopardize one’s wealth.