Jim Cramer, Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now.
The time to buy is when everyone else is selling. I think if you've got a long time horizon (five years or more), it would not be smart to sell now. Yes, there's some chance things will tank further. There's also some chance that we're seeing herd behavior, that the housing market will bottom out and stabilize within the next year, and things will gradually get back to normal. Do people really think the Dow is going to be below 9,800 in 2013?
If you're risk-averse or have short-term needs, that's a different situation. And if you've got money invested that you can't afford to lose, then a heavy allocation in stocks wasn't a good idea to begin with.
Determine your tolerance for risk, and go from there. Investment 101, folks.