Take this time to reevaluate your asset mix. If you can handle losses then you probably don't need to lighten up on stocks. But if you're not quite the risk taker you thought you were, consider adding some bonds and maybe even money funds to your portfolio. If you do decide to unload some stocks, select your sell candidates based on your estimate of each stock's future prospects, not whether you're sitting on a loss or a gain. And finally, keep putting new money in stocks.
History shows that investors earn some of the best stock returns after severe setbacks.
That's not to say the market can't go lower from here. Time Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited. Our Privacy Policy . Terms of use .