In times like these, people become fearful of losing all of their money.

Fear leads to panic and panic to irrational decisions, says former Merrill Lynch executive Bill Edmonds.

Advisors now spend more time reassuring clients they are doing the right thing by holding their stocks.

Stock declines of 10% or more are common, and bear markets of 20% losses or more occur periodically.

“We’re officially in a bear market now and the beginning of a recession.”

Good advisors develop long-term plans with investments to achieve goals

They remind clients that they are in it for the long haul, Edmonds said.

Bailing out of stocks or bonds is not something you’ll hear a good advisor suggest.

In the last few months bonds have appreciated greatly in value while stocks as measured by the S&P 500 fell about 35% in 5 weeks.

Warren Buffett said it well. “The stock market is a device for transferring money from the impatient to the patient.”