You are supposed to sell when it's HIGH

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My 401k was $110K about two years ago. That was when I cashed my stock options to buy an updated computer, pay off my credit cards, and put the rest in money market. I see I should have waited a bit before making contributions to my Roth IRA, but c'est la vie. I made a minimal investment in conservative funds seeing that the prices were wavering even then, and since I'm 50, I thought that was the time to make my 401k more moderate. It is now at $95K. It is still a profit with the over ten years of contributions, so I am still not worried. Yes, it is over $15K that is no longer there from two years ago, but this is a long term investment - I don't expect to start using it until I'm at least 70 - and who knows what would have happened at that point. So why are so many people selling now? It was obvious something was up months ago, and I am glad I caught it in time much sooner, but now - if you sell securities at a lower price, you guarantee the loss, no chance of recuperating. So in the past few days I put a few thousand on a few mutual funds (my favorite vehicle, diversification built in, just choose the one with the lowest expense ratio). Since I chose those where stocks were a major portion of course their price have been going down, some like a stone. Still the prices are great now - just enough people have to start buying again at these low Wall-Street (as opposed to Wall-Mart (attempted humor there)) prices It's not up to Mr. Bush. He will only screw things up. It is up to us who have the guts to take the chance.