It's not all bad: There are things investors can do in trying times

— -- Markets like these make you want to retreat to your happy place, that spot in your mind where the Dow Jones industrial average always rises, banks pay 10% interest on CDs with no fees and the wee people stuff your pillows with fresh $100 bills every night.

In the real world, the stock market is awful, interest rates are a pittance and the only wee people you see are the ones whose tuition you'll have to pay in a few years.

Now it's time to survey the damage, look for opportunities, and revise plans. Fun? Nope. But it may not be as bad as you think.

The damage

Stocks. Where to begin? The Standard & Poor's 500-stock index peaked on Oct. 9, 2007, at 1565.15. Even after Thursday's explosive rally, the S&P 500 closed at 1206.51, down 22.9% from its October high.

International stocks. Many people view foreign stocks as a good diversification play. Unfortunately, going abroad made things worse. The MSCI Europe, Australasia and Far East Index has fallen 29.6% through Wednesday. The Lipper Emerging Market fund index has plunged 37% since the stock market's peak.

True, the value of the U.S. dollar has fallen against most major currencies since October, and a falling dollar boosts the value of foreign stocks held by U.S. investors. But most world markets fell even harder than the U.S. market did.

Cash. Investors who kept their money in bank CDs haven't lost money this year. On the other hand, someone who invested in a one-year bank CD when the bear market started in October earned about 3.6%. Prices rose 4.9% from October through August, meaning that most cash investors have lost money to inflation.

Bonds. The Merrill Lynch Master 1-10-year total return index, which measures a wide variety of bond returns, has gained 6.71% since the stock market peaked in November. Merrill's index of long-term Treasury bonds is up a stunning 15.9%, as investors have fled to the safety of government-guaranteed bonds.

Gold. Often considered a refuge when paper assets melt down, gold has seen both a boom and a bust. It sold for $736 an ounce when the bear market began and soared to an all-time high of $1,011.25 on March 17. But gold swooned back down to $740.75 this month before leaping back up to $893. Those who were able to keep their pacemakers working ended the period with a 17.2% gain.