Six months ago everyone expected a 10% market decline.  The stock market hasn’t had a down year in the past five.  We have been lulled by the market’s low volatility and the complacency around the world’s problems.  So, all of a sudden we wake up and wonder if we should sell stocks.  Geopolitical risks are bubbling up, energy prices are lower, the spread of Ebola is a fear and economic numbers are mixed.  Should you sell stocks?  It depends. We all talk about the importance of asset allocation but do we practice what we preach?  It is all too common to adopt the “glide” approach to allocating assets; we let our stock portfolios glide higher with a strong market, increasing our target allocation to stocks and convincing ourselves that we really can stand more risk.  Stocks glide higher, we feel good and the better we feel the easier it is[more…]