Replacing the rose colored glasses with the dark goggles of pessimism blocks much-needed rational thinking. Like inflated real estate values, stock prices, too, ebb and flow with prevailing market conditions. While today it's the stock market taking a beating, tomorrow it might be gold, oil or real estate. All markets run in cycles and will have their day in the sun. Suggesting otherwise denies the history of meltdowns in or out of financial markets.
Risky companies are always part of the investment landscape.
But solid companies usually pull through the bad times to reach new heights. Jumping into any market carries the risk of getting in at the wrong time. But if you're a player, timing is less significant than getting in the game. Sure, investors risk losing right off the bat, but they also stand to gain once the market rebounds. Questioning a 'buy and hold' strategy is a good thing when it comes to speculative companies without much chance of turning a profit.