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Scared of volatility. Yeah we all are. But TheStreets here to help you become financially fit. Get that portfolio right for 2019. Look, defensive stocks... We've talked about it. Consumer staples they're all good. But if you want to beat the average portfolio, you actually can add some growth stocks, cloud exposure. Microsoft maybe says this guy.


Procter and Gamble, Coca-Cola, Pepsi. And those three I'm saying because if you know you go back, we had three weeks of bad market. Those three stocks performed really well during that bad market. Why, what do they share in common? Very consistent earnings, very consistent product, and very consistent dividends.


I don't know if I'd consider cloud sales to be defensive. I would consider them to just be an extremely high growth business. Everything's been moving to the cloud and it hasn't yet commoditized in terms of pricing. Microsoft has really taken the lead in the cloud they've overstepped AWS even a little bit now and that's been definitely powering the stock powering their revenue and some amazing earnings growth at Microsoft since Satya Nadella took over.


All right. So you had some growth to your portfolio. Good. Great. Happy congratulations. Let's get back to being defensive for 2019. Dividend stocks, energy stocks offer that. Quickly, we got Stephen Gilfoyle of real money. He's a trader. Listen up.


First and foremost you want to make sure you have a revenue stream. So you want to make sure you do have some dividends in there. That's why I'm going out on a limb and saying that I need some energy in my portfolio.


All right. Look you want some less risk than equities. High yield bonds they've sold off. Fed... Also not going to raise rates that many times in 2019. Possibly zero times. So that's not so, it's good for corporate credit. High yield bonds all of them offer. Some good real yields. Maybe get back in.


Early 2019 when we had maybe hopefully a little more clarity on how the Fed will react next year, how the Trump situation will work with trade. We will have an opportunity probably in Q1 to add to exposure in high yield.


Hey, gold. Gold's always a safe haven. This guy says gold is going to rise a lot in 2019 as the year gold. Safehaven guys.


From a historical cyclical perspective. I think that the precious metals right now gold and silver are valued buying opportunities on a long-term basis. And you know that's not any bold prediction. If you just look at the history and the cyclicality of raw commodities you can see well defined highs and lows we're just moving out of a low that would bring into our eye in the coming years.


There's a lot more to come on financial fitness for the month of January. Check out TheStreet.com. We're going to tell you how to balance defensiveness for maybe a rough 2019 economy, but also make sure you've got good growth and firepower in that portfolio of yours. TheStreet.com guys.

Sure, investors will be a bit more risk-off in 2019 than they were in 2018, but that doesn't mean a strong portfolio has to be chalk full of your grandfather's government bonds and dividend stocks.

Financial Fitness, 2019:

Defensive like consumer staples or utilities could be good, as the economy certainly slows down, and possibly soon heads into a recession. But for investors that are choosy, or investors that find good money managers that really are active managers, there could be some growth stocks like Microsoft Corp. (MSFT - Get Report) that might add some firepower to the portfolio.

Still, dividend stocks are important, as they provide income and can take some risk off of an investor's cost basis. Stephen Guilfoyle of TheStreet's sister publication, RealMoney, likes energy stocks.

Bond land may seem boring, but it's important. Treasury yields have fallen, so it might not be a great time to go in yet. But if it becomes clear the Fed won't raise rates in 2019, buying bonds before the Fed potentially implements stimulus measures could be a good move. As for high yield bonds, those have sold off and currently offer yields around 7%. If the Fed lays off of rate hikes, corporate credit may not take a huge hit, so buying those soon could work.

As for commodities, Kitco News' Senior Market Analyst Jim Wyckoff says Gold could have its day in the sun in 2019.

For the best company specific analysis during what will likely be a big stock picking season, see Kevin Curran's RealMoney content every day. 

Microsoft is a holding in Jim Cramer's Action Alerts PLUS member club . Want to be alerted before Jim Cramer buys or sells MSFT? Learn more now.