With the stock market now down about 15 percent from its high-water mark last year, the bears are taking huge bites out of investor profits that once came so easily. And if you're still holding the same tech stocks that you owned a year ago, you're in far deeper trouble. The Nasdaq index is down a whopping 65 percent from its 52-week high. While the Chicken Littles of Wall Street are running for cover, many investors are wondering if they should retreat to the sidelines, stay put or add to their holdings. While it's abundantly clear that there has been some panic selling, Alan Skrianka, chief market strategist for Edward Jones, warns investors that this is no time to jump ship.
Winners keep a cool head and look for high-quality opportunities while maintaining diversification.
Sacramento money manager Dan Seidman concurs with Skrianka and cautions investors to be patient. Investing is buying a company that has earnings, perhaps a dividend and a business that has some sort of sustainable lead or technology that makes them the best of their class. If you stick with those kinds of stocks for the long term, you'll do well. And if you don't, he says, the lesson is painfully evident. We've heard so much hysteria in recent sessions, but I think you have to remember where we've been.