| With the 2008 stock market plunge still fresh on our | | | | might think about scaling back positions gradually until |
| minds as investors, many individuals remember having | | | | you have access to the capital you need. |
| their portfolios drop upwards of 50%. As such, it | | | | If your goal is simply to diversify out of stocks and |
| seems like many investors are terrified with regards to | | | | spread your risk out over various assets classes, |
| future black-swan events that might result in a major | | | | consider merely investing new capital into other areas |
| drop of one's portfolio and assets. Even though the | | | | while leaving your stock portfolio in tact. Other areas |
| market has rebounded significantly since the March | | | | might be gold and precious metals, bonds, or real |
| 2009 lows, many still wonder what the future might | | | | estate. |
| bring. The question becomes should I cash out now | | | | Lastly, with regards to stocks, I would definitely |
| and sell my stocks or let them ride and risk further | | | | encourage and emphasis on dividend paying stocks |
| loss? | | | | since dividends are real returns and cash in your |
| This answer to whether or not you should cash out | | | | pocket. Dividends cushion potential losses and are |
| your stock portfolio will differ depending on your | | | | often less volatile than the high-beta stocks. |
| personal situation and circumstances, but abandoning | | | | Since investing does include risk and the chance that |
| equities may or may not be something to consider. | | | | you might lose some money, you should run whatever |
| With that said, it's definitely not the best situation to | | | | strategy you're considering by a financial expert or |
| completely unload your portfolio at a single time since | | | | planner. Also, make sure your decisions are based on |
| timing the market is difficult to say the least. If you | | | | sound strategy and not emotion. |
| absolutely need the money in the near term, then you | | | | |