The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has continued its sell-off on Tuesday with the index down 1.1% in midday trade.

The vote in favour of the United Kingdom (UK) cutting its ties with the European Union (EU) has cast a shadow of uncertainty over global financial markets.

While talk of a global financial crisis (GFC) part two may be off the mark given how few people accurately saw part one coming, many investors remain uneasy about the underlying strength of financial markets.

For long-term investors, in general, history has shown that it is best to maintain exposure to the market and ride out the bull and bear markets.

That being said, an active portfolio management approach means there are decisions to be made.

Hold more cash

Increasing your cash position or owning companies with lots of cash can maximise your ability to make the most of market crashes. One way to gain a higher cash weighting is via certain listed investment companies. For example, WAM Capital Limited (ASX: WAM) was sitting on 29% cash and fixed interest as at 31 May 2016 which means the portfolio is well positioned to snap up bargain opportunities during the current malaise.

Infrastructure stocks

It’s hard to see how an infrastructure business such as Transurban Group (ASX: TCL) whose primary assets are Australian toll roads would be unduly affected by ‘Brexit’. In fact, current volatility is likely to keep global interest rates lower for longer, which means that the heavy debt loads of infrastructure companies such as Transurban could benefit.

Defensive

Identifying truly defensive businesses is not easy given the intertwined nature of global financial markets. However one ASX-listed company which, in my opinion, is deserving of the title is funeral operator InvoCare Limited (ASX: IVC). When it comes to predictable and steady earnings, Invocare is one stock to consider for your portfolio.

If you are interested in quality dividend shares, then I would recommend this top dividend share instead. A strong yield and potential share price gains make this a great investment idea in my opinion.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.