Unless a company reports quarterly results that stray wildly from expectations, it's best to keep a long-term view on a stock, according to Morningstar's Heather Brilliant.
Relative to their categories, Fidelity's stock funds generally fared better than its fixed-income portfolios last year, but several funds in both camps have good long-term prospects.
TIPS, real estate, and commodities are great inflation-hedging, liquid investments, says Morningstar's David Blanchett, who details the importance of exposure to these assets.