Today at least four people asked me what they should do about their stocks. I take that to mean the panic is starting.
Every time the market goes does a significant amount, there are levels of panic the investing public experiences. The further down things go, the more people reach their panic point. Today was the first time I have heard people seriously wondering if they should get out of the market.
Perhaps people have gotten complacent with their thinking on how the market behaves. We have been spoiled these past 6 years as the market as gone steadily up (except for a few very quick reversals). The fact stock prices recovered quickly any time they went down the past six years has also made us complacent.
At this point you need to remind yourself of your investing strategy. If the market has hit or keeps going down to your panic point, then keep reminding yourself so that you can stick to your strategy. Changing strategies when things aren’t going your way is a surefire way to lose money.