Never Sell Into a Panic

Is this the end of the bull market, and is it too late to sell?

Having received more than a few emails asking that question, it's only fair to give an honest response. That is: "I really don't know." And no one else does either. The fall-back position is that old Savage Truth: "Sell down to the sleeping point." But never sell into a selling panic.

No market goes straight down. There's bound to be a "bounce" -- somewhere. That's when your self-discipline will come into play. Then there will be a huge temptation to just give a sigh of relief and forget the pain of a couple of huge down days. Just as there is currently the temptation to cut and run.

Over the long run -- at least 20 years -- history says you'll come out ahead with a well-diversified portfolio of stocks. But we each have a different time horizon and a different risk tolerance. That's why you have to take a step back and assess the reasons for this market decline, your current positions and your ability to stay calm under the mounting pressure of losses. ...