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Author: charmatica One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 667  
Subject: Re: Anyone else considering cashing out? Date: 9/24/2008 8:32 PM
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Would not cash out at this time for several reasons, many of which you constantly see posted here and other financial advisor websights.

first, as the previous poster pointed out . . .you would be taking a loss.

second, the upside at this point is greater than the downside in my opinion. Even if the market slips another 10 to 12 percent, history shows us it does come back eventually.

third, many people lose when they try and time the markets both on the downswing and the upswing. They often sell to late, or buy to late.

Now, with all things considered maybe first you should evaluate your reasons for investing in the first place. Have the core businesses you bought into changed? If not, why sell them? Are you diversified enough. . .if you are having trouble sleeping at night, as they say here at times, then probably not. In addition, what benefit would you get from selling now, other than locking in losses? Are there some companies you own that you could use now to buy more of, thus reduce your average cost. If you have done your research, and feel confident in the company you own, now is a great opportunity to buy back and average down. . .as long as your not chasing the stock down.

Of course, sometimes you just need to just step away from the screen and not watch the day to day movements. This doesn't mean you should ignore your investments, but daily or hourly tracking is pretty pointless unless you're a professional trader. For us average folks, the day to day monitoring only confuses us, feeds our emotions, and creates missed opportunities because we base our decisions on these emotions, instead of good, old fashion R&D and waiting for the payoff. Instead, take this time you would normally spend surfing the financials to read a good book on investments by some of the well known investors like Buffett. Look at your financial goals, short and long term and see where you can improve your portfolio risks and balance. Rather than taking things out, consider this a buying opportunity and look at what you can buy. When others run, simply smile and enjoy the opportunity.

Fool on,

Charm~
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