Many people are saying that the current stock prices are disconnected from the real economic realities. In other words, there is a stock price bubble that is about to burst. When this happens, there will be panic selling. The article below provides 5 tips on how to recover from panic selling.
While these 5 tips are useful, the best thing to do is to make investments according to the appropriate valuation of a company. This process should include evaluation of its strategy, long term directions & plans, as well as the track record of the company in executing this strategy. When its stock price is above its valuation and the management team is deemed not to be able to be able to address the strategic concerns, it would be time to sell it. Otherwise, stock prices will continue to fluctuate according to sentiments. If the company is assessed to be sound and its stock price drops, that would be the time to accumulate even more of its shares.