In the short term

NEW YORK – Patrick Smith is one of the investors managing to sidestep the disarray on Wall Street by following the advice of the pros and looking years ahead. At the same time, he’s placing some short-term bets and making a bundle.

“Now is a better time to buy than at any time in our history,” said the 25-year old investor, who, with a few years experience in the financial industry and a willingness to use a two-tier strategy, has seen his portfolio surge 85 percent this year.

Smith’s strategy, which prizes sensible long-term investing while also making the occasional short-term play, might be worth emulating; he’ll hang on to stocks he thinks are good long-term moves and then look for a company like Wal-Mart Stores Inc. that might hold up well in a bruising economy. The philosophy of tweaking rather than upending a portfolio has merit for even less-aggressive investors who might, for example, look for stocks that pay dividends to get through a rough market.

Smith, who lives in Denver, expects the investments he’s making in a stock market down 45 percent from its October 2007 peak will allow him to reap big gains in the coming years. But until markets bounce back, he’s taking advantage of other investors’ fears with some quick moves: If a stocks falls sharply, he might snap it up the next day in hopes of capturing a rebound and then selling just as quickly.

While his fast trades aren’t what most financial advisers would recommend, Smith contends that investing in a difficult market can be as simple as looking for solid companies that sell products people need or want even in a recession. That might be a Procter & Gamble selling staples like toothpaste, laundry detergent and diapers. While that’s not a new strategy on Wall Street, it’s one he says can work.

“Look at the companies that are doing extraordinarily well right now – McDonald’s, Wal-Mart. Those companies that make products that people need are strong bets on the future,” said Smith, whose trades are tracked by the investing Web site Covestor.com.

For those not equipped with the knowledge for making quick trades like Smith, financial experts say there are other ways to try and boost returns in a weak market.

Barry Glassman, a financial planner and senior vice president at Cassaday & Co. in McLean, Va., said rather than making draconian moves like selling out in a weak market, investors can look for income through dividends.

“We are actually being paid to wait,” he said, noting that stocks making regular payouts to investors offer a source of income even when stocks are sliding.

But Glassman said investors should guard against rushing to one corner of the market simply because others are.

The move in oil illustrates his point: After rising sharply and peaking in mid-July at $147 a barrel, the price of crude oil has given up two-thirds of its value.