The past several months have been among the most volatile in recent economic history, so it’s understandable that investors today are left to search for strategies to help them weather the storm. As you review your portfolio and develop your investment strategy for the next year, or two, there are a few things you should keep in mind.

In most cases, it makes sense to stick to your long-term investment strategy.

Investing amidst volatility is about the discipline of developing a sound long-term investment strategy then sticking to it; focusing on business values rather than stock prices; and keeping your emotions at bay. While the U.S. economy has historically been resilient and adaptable, it is important to have realistic expectations for the immediate future.

In the year ahead, you can expect that there will be additional fluctuation in stock prices – but don’t let that alone drive your investment strategy. The overall valuation of a company should be more important than the price of their stock at any given moment. As such, we believe it is important, especially during these turbulent times, to choose investments based on the value of the business, not the price of the stock.

An unpredictable market can require proper diversification.

While history does not guarantee future performance, it has shown us that investors who had a diversified portfolio were better able to survive the peaks and valleys of the financial markets. Simply put, a diversified portfolio likely carries less risk.

When you re-visit your portfolio’s asset allocation, keep in mind that it is wise to be diversified between stocks and bonds, and to also be diversified within each asset class.

Even in today’s market, opportunities for growth do exist.

In every period of financial market volatility for the past several decades, new growth leaders have been identified, and the current situation is no different. Strategists in Banc of America Securities – Merrill Lynch Research believe that the credit-driven stories of the past 5 to10 years will give way to new leaders who they believe will likely emerge from defensive and cash-flow stable sectors.

Consolidation and protectionism will likely be two key words for 2009.

After the over-building of balance sheets that occurred during the credit bubble, consolidation is likely to follow. It’s already underway in the financial sector, and we expect other areas to feel the pressure to consolidate, as well. Sectors such as industrials, energy, materials and technology are among those that may be required to consolidate in order to maintain or return to profitability.

Typically, protectionism is not far behind consolidation. With this in mind, investors should keep an eye out for trade protectionism as a political reaction to increasing rates of unemployment, et cetera.

Most importantly, keep in mind that investing in an uncertain environment is a very personal decision, but you don’t have to go it alone. Your financial advisor can help put events into a broader perspective, which may allow you to have a more realistic sense of the strength of your investments and your investment strategy.

The opinions expressed are subject to change. The comments should not be construed as a recommendation of any individual holdings or market sectors. Any information presented in connection with Banc of America Securities-Merrill Lynch research is general in nature and is not intended to provide personal investment advice. The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Investors should understand that statements regarding future prospects may not be realized. Diversification, asset allocation and rebalancing do not assure a profit or protect against loss in declining markets. The investment strategies presented are not appropriate for every investor. Individual clients should review with their Merrill Lynch Financial Advisors the terms and conditions and risks involved with specific products or services.