Making investment decisions is difficult in a slow economy. According to Consumer Reports, creating an "all-weather" investment portfolio provides the ability to handle the ups and downs of the market. The key is finding stable investments and diversifying your investment portfolio. Investors should also continue to sock away funds, despite economic woes. Making regular contributions in investments, allows you to take advantage of good opportunities while prices are low.

International Stock Options

According to Consumer Reports, during a slow economy, consider investing in international stocks. Emerging markets often have the potential for long-term growth and aren't generally affected by the economic difficulty in the United States. Before investing in emerging markets, talk with your financial adviser.

Municipal Bond Funds

Municipal bond funds have the ability to yield more explains Consumer Reports. Municipal bonds are essentially "IOUs," which are issued by state and local governments to fund hospitals or public transportation projects. Municipal bonds are a favorable investment because interest payments aren't taxed by the federal government. Check out municipal bond funds, which have lower expenses then individual bonds. Individual bonds are best suited for people with $25,000 or more to invest, according to USA Today.

Conservative Investments

According to USA Today, preferred stocks are an investment with high-yields that are good for conservative investors. These stocks provide a partial company ownership (without voting rights). The appeal of preferred stocks is they provide a fixed dividend that doesn't change. This can provide stability in a shaky economy.

Avoid Treasury Bills

People are tempted to pour money into treasury bills during a slow economy. Consumer Reports, however, recommends avoiding treasuring bills, and focusing on high interest money market accounts and short-term certificates of deposit (CDs). These investments provide more liquidity, which allows investors to quickly jump on good investing deals. Also, make sure to diversify your investment portfolio. This allows investors to minimize market risk.

Source:

Consumer Reports: Investment Moves for a Slow Economy

USA Today: Municipal Bond Funds Offer Long-Term Income

USA Today: Feeling Conservative? Consider these Investments