Sell Equities move to gold

Well, I wish it were that simple but it isn't. We know from experience of the past several decades that it is impossible to time the market or predict where it will go in the future.

A small correction in the market is enough for people to start predicting a bear market. Likewise, a small rise in the market will have people turn bullish again.

The best course of action is to stay disciplined and invest only in the best quality stocks that have earnings predictability. The key is to be confident of the specific stocks that we are investing in. If that confidence is there, then every dip in the stock price is a buying opportunity.

You can read this article on how leading investors suffered crippling losses in a market downturn but used that situation to their advantage by buying more of their favourite stocks.

How two of history’s greatest investors deal with losses

Another great resource that will help you to deal with market volatility is the "Intelligent Investor" by Benjamin Graham. In that the author explains convincingly on why we should not fall prey to the tantrums of "Mr. Market" (See Chapter 2 and 8)