Trader Talk Why you shouldn't cash out when stocks fall
Oct 22, 2025
Kevin Mahn, President and CIO at Hennion & Walsh with decades in wealth management, offers practical market perspective. He explains why staying invested usually wins over trying to time drops. He discusses Fed rate paths, aligning risk tolerance with age, and tactical ideas like AI infrastructure, aerospace and small-cap biotech. International stocks also get attention as key portfolio plays.
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Client Panic During A Short-Lived Dip
- Kevin Mahn described a 10% drop early in the year that prompted panic and sidelining by retail investors.
- He recalled a client begging to sell during the dip and later thanking him after markets rebounded.
Big Gains Cluster Near Big Losses
- Historical data shows seven of the 10 best market days occur within two weeks of the 10 worst days.
- Missing those strong rebound days by going to cash dramatically reduces long-term returns.
Match Portfolio To Real Risk Tolerance
- Align your portfolio with your true risk tolerance and investment time frame; adjust if volatility keeps you awake.
- If you need downside protection, build a portfolio that sacrifices some upside for stability and income.