When to stop investing in the stock market? Wild price swings are shaking the resolve of some: Is it time to bail out of equities and bonds?

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Is it time to bail? Here's what some financial pros are saying to help soothe the frayed nerves of their clients amid a stretch of topsy-turvy trade.

Is it time to bail out of stocks and bonds? This isn’t the market that investors likely signed up for back in 2021 when shares in GameStop Corp. GME, +4.69% and movie chain AMC Entertainment Holdings AMC, +3.72% were headed to the moon, drawing in droves investing neophytes.

Those factors have contributed partly to one of the ugliest January declines in the history of the technology-heavy Nasdaq Composite Index COMP, +3.13%, which is down nearly 12%, with a single session left in the month, leaving one final attempt to avoid its worst monthly decline since October of 2008, FactSet data show.

“You had a whole constituency of investments that should have never traded to where they did,” Katz said, “Aspirational stocks, meme stocks…all fueled by fiscal and monetary stimulus and this year it is about a great rerating,” of those assets, he said. That is not to say that investors shouldn’t also be adept enough to cut their losses when the narrative shifts but such decisions should hinge on a change in the overall thesis for owning assets.

 

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And then invest in what ?

When everyone panic sells, I'll buy more shares with the same amount of money.

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