As a member of the Forbes Finance Council, Casey submits articles for consideration to be published in Forbes. Howard Bailey pays an annual fee to be a member of the Council.

Investing in the market carries risk. Sometimes, a company doesn't do as well as expected during a quarter or certain commodities perform more poorly than you'd like. And, at times, large sections of the market take a downturn, leaving investors worried about their next steps.

While concerns are natural, taking the wrong steps only leads to more pain rather than a working solution. So how can one protect his or her investment portfolio against unexpected downturns? Is it better to diversify heavily, or should one simply keep strong cash reserves in order to take advantage of market changes? Here is what members of the Forbes Finance Council advise.