When times get tough in the stock and bond markets, it's easy to get discouraged. These eight keys to investing are intended to help you navigate short-term market fluctuations and stay focused on your long-term financial goals.

1. All investments go up - and all investments go down
Fluctuations in the markets are inevitable. Investments that offer the greatest potential for long-term growth, such as stocks, tend to have the greatest volatility. Accepting this reality can help you keep the markets in perspective.

2. Many investors do the wrong thing at the wrong time
Human instinct tells us to respond to uncomfortable situations. Consider how investors reacted in the early 80s: money markets were more appealing than stocks. But, in 1982-1983, once investors saw stocks begin to move higher, they shifted money there. However, by 1984 the economy entered a difficult recession and the market floundered. Investors fled stocks in favor of real estate, which was then growing in popularity. By the late 80s, the real estate market had peaked. Investors sold out - and the cycle continued.

3. Markets have often overreacted
How many times have you heard that the run-up in the stock market is over? We heard it in the 1980s and again in the late 90s. Each time, investors rushed to put their money elsewhere - which brings us to our next key idea.

4. No one knows what the future will bring
There are many market prognosticators, each with his or her own tool, strategy or method of predicting the market's next move. Sometimes they're right - and sometimes they're wrong. Forecasts may be useful for overall guidance but don't shift your entire investment strategy on the forecast of one person.

5. Diversification is a smart strategy
What can you do about the uncertainty? Diversifying your portfolio among various investments may help to offset weakness in one area of the market with strength in another.

6. Inflation eats away your wealth
As inflation drives up prices, it eats away at your purchasing power. It's important that the return you seek to receive on your investments be more than the rate of inflation so your purchasing power can increase over time.

7. Uncertainty can create opportunity
When everyone else is wondering about the future direction of interest rates, energy prices and tech stocks, keep in mind that uncertainty can create opportunity for you. You're invested for the long term, so view down markets as an opportunity to buy at a discount and up markets as an opportunity to accumulate higher returns. Don't be afraid to take advantage of uncertainty and stick with your investment strategy.

8. Never say never
History is not always an accurate predictor of the future but it has also shown us to never say never. After the market downturn of 1987, most people thought stocks would never recover. In 1996, they were arguing that the Dow would never break 8,000, and two years later they wondered whether it would reach 10,000. Who knows what's next for the Dow? Never say never.

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