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Step #4: Diversify into investments that can profit independently of the stock market.

Last year, despite a searing 37% loss for the Standard & Poor's 500 index, some commodity-trading funds actually posted gains.

My #1 pick in the group, Aspect Global Diversified Fund, returned a superb 24.4%. Over the past decade, the fund's trading program has chalked up a 183.3% cumulative return, with only two down years (1999 and 2004). Minimum to open an account: $10,000. For a prospectus, call Bob Condon at Foundation Investment Group in Berkeley, Calif. (800/899-8779).

If your taste runs to a more sedate "alternative" investment, consider Everbank's WorldCurrency CD denominated in Indian rupees. The rupee has steadied against the dollar since last October, and Everbank's three-month rupee CD is paying 5.25%. FDIC insurance applies, but only to the account's value translated back into dollars. You're not insured against swings in the exchange rate. Buy whenever the rupee is quoted at 48 (or more) to the dollar. Minimum deposit: $10,000. Call 800/926-4922 or visit www.everbank.com.