This is the latest in a series of video interviews in which Pat McKeough gives his advice on a variety of topics. Some will deal with his overall investment philosophy, others on specific investment strategies and still others offer stock market advice related to events that are affecting the markets and the economy. This week, the Financial Post asked Pat whether investors should sell in the wake of the latest European crisis and the tremors it has sent through the market. Following up in today’s video, Pat explains why it’s not a good idea to bail out when you don’t really know the outcome.

Q: Pat, in today’s Financial Post, you were interviewed about the European economic crisis and whether investors should sell before it gets worse?

Pat McKeough: You know, there are really two questions there; will it get worse, and should you sell? It’s entirely possible that the bottom will fall out of the market from time to time because there is some unexpectedly sudden development, like a huge general strike in Greece, or something going on that spreads to Spain or Italy. But I think you need to recognize that often those crises happen close to the turning point in markets.

So the question is "should you sell?" I don’t think so—I think we’ve been down so long because of the things that are going on in Europe, that this crisis has really spent a lot of its impact. And if we did get a break in the clouds, we could see a sudden upturn.

So I think generally speaking, if you want to sell now, it should be because of a change in your objectives, or something else you’ve changed in your life. But not because the market has gone down or you think the market will go down, because your predictions on that are not going to be reliable.

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COMMENTS PLEASE

There have been quite a few turbulent periods in the market in recent years. Have you sold off stocks during a market downturn? Did you transfer money into fixed-income investments? Are you satisfied with the decisions you made? Is your portfolio in better shape or worse shape than it was before you sold? Let us know what you think in the comments section below. Click here.