Markets around the world have declined in January. In the U S, the large-cap S&P 500 and the small-cap Russell 2000 benchmarks are down 3.6% and 3.7%%, respectively.

The decline in overseas stock investments has been larger. The MSCI EAFE and MSCI EM indexes commonly used to measure the performance of developed and emerging markets are down 5.1% and 7.8% respectively.

Investor's willingness to take risks has diminished. In the bond market, higher quality corporate debt and Treasury securities have gained ground while lower quality debt has sagged.

Meanwhile, all the news is not doom-and-gloom.

Nearly 80% of the S&P 500 companies reporting earnings have beaten analysts? forecast. The Commerce Department says that US Gross Domestic Product grew at its fastest pace in six years.

By preparing to get into the right stocks now, you have the opportunity to make some cool cash when this sell-off runs it course.

To get my picks for scoring outsized returns, read more!