The Dow has dropped back below 10,000 and it looks like the market is in a downtrend. Many analysts and market commentators are bearish on the market. They believe that the market could take another leg down. So, what should you do with your portfolio? Is now the time to buy or sell?

Here are 4 solid strategies for your portfolio.

1) Pick up some dividend plays.

Market downturns are a great time to pick up some stocks with growth potential and solid dividends. Yields tend to get very attractive when stocks retreat. Take Exxon (NYSE: XOM) for example. Exxon is historically a terrible dividend play but the oil giant’s shares are so low that Exxon is yielding 3% right now. Exxon has been beaten down to the mid $50’s based on pure speculation that Exxon is interested in BP. The share price drop seems unjustified.

2) Buy stocks using dollar cost averaging.

You can never when a market is at its absolute bottom. So, the time is buy is when you think prices are low for equities using dollar cost averaging. I typically like to buy portions of a stock in thirds. I start my position with the first third. I add the second third when the price dips. Then I buy the final third last. You may not get the absolute best price but it keeps you from catching a falling knife.

3) Stay away from bonds.

Market dips are not the time to buy bonds. Investors run to the safety of bonds which drives down bond yields. Ten year treasury bonds are currently yielding under 3%. That tells you that investors are running scared. You should be looking to buy stocks when investors are fearful and sell stocks when investors are greedy. Bonds will be more attractive when investors become hopeful again.

4. Buy some protection.

Nervous investors can add some protection by buying put options to protect their long positions. For investors that are unfamiliar with your put options, put contracts give you the option to sell shares. These options are normally good for a year or less. Put options will limit your downside risk and you don’t have to dump your shares to do it.

Check out Kevin at 20’s Money post on Investing In The Next Lost Decade.