Is it time to exit stocks?

Here is the article published on Oct. 11, 2014.

After the worst stock market drop of the year, plenty of people wonder if it's time to sell. The argument goes something like this: The S&P 500 is up nearly 200% since it bottomed out in early 2009. There hasn't been a correction since 2011, let alone a true "bear market" where things really drop. Surely it's time to exit...

But here's the truth: Most of us are better off doing nothing.

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4) Get a long-term plan and stick to it. 

If you are worried about the stock market right now, the best use of your time is to make sure you have the right plan.

Do you have the right mix of stocks and bonds and other assets?

"The typical long-term investor who has most of his or her investments in a retirement account of some sort needs to a) have a plan and b) stick with the plan," says Timmer.

From time to time, investors should look at their portfolios and ask if they need to rebalance. Given the phenomenal rise of equities since March of 2009, it's possible that you need to trim your stock allocation a bit.

But be wary of throwing out the entire game plan. Stocks still give the best return by far over the long run.

As humans, we worry a lot about those down days. But we forget that the bigger risk is missing the upswings.