This is not financial advice but some thoughts. While I ponder my own situation and my current negative trades.
I think it is all about your believes and risk/reward levels. This has happened before. 2008 comes to mind. Panic sets in and people were selling and taking losses. They sat on cash feeling bad for the losses and didn’t know what to do. They waited. And waited. For what? The market to recover? Well, it did and chances are it will this time again. So then what? “Hey, market has recovered, it is all good. Let’s get back in.” Good plan. But wouldn’t it be nice if you bought when the price is at an all time low? Yes, it could go lower. But if you look at top stocks like IBM and other solid companies – and see their price is lower than 2008. IBM is at the time of writing $103.26 and it has not been that low since May 2009. At the bottom of the 2008 crash it bottomed out at $81.60 on November 1, 2008. From there it went up to a high of $213.30 in April 2013. That is a $132 rise in less tan 5 years.
So now what? Will it go lower? It might. As per today (March 12) it appears there is no sight of a come-back. So yes – it could go lower. But what if it does? What if you are willing to invest and buy 100 shares at 103.26 = $10,326. If it goes down to the last low (very unlikely) you will be $22/share = $2,200 in the hole. Then it turns around, and blows by your entry price and you are in profit.
OR you wait some more until it starts to move up again. This is a personal choice. All I am saying – don’t overlook big company stocks low price. History shows they will recover. You just have to be willing to decide when to get back in. If you do like the masses and wait until it does recover, and that makes you comfortable that;s what you do.