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Should i bail or hold on?

The bottom line is, no one really knows.

In good times when everything is going up, its easier to invest. But right now there is uncertainty in the market for a number of reasons. That makes for volatility as big money tries to decide what to do or anticipate the trends.

We know that stocks go through corrections from time to time. Most don't last very long. Usually you are best off to hold on and wait for the recovery. Occasionally stocks go through major declines. In one of those you will wish you sold.

Most use a guideline that if a stock is down 10 to 15% from its high, you should review why you bought it and decide if it is still a buy. Perhaps your timing was off. It was the wrong time to buy.

Some of the volatility comes from investors who decide to sell, hold cash and wait until things settle down a bit. But that can be a long wait. And returns from those fixed income investments are not so attractive.

If in doubt, the best choice can be to get out. But 50/50 you will end up selling at the bottom before recovery begins.

Flip a coin. No one knows.
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