some coworkers, and one of them said he had just sold all his stock and mutual fund shares. I stared at him in horror. He had just sold everything for pennies on the dollar (and may have faced taxes and penalties, too).

Obviously, everyone who held on a little longer saw their mutual fund shares reclaim their value, and then go on to new highs.

Now, if she's hit 60 and has left all her retirement in growth stocks, now could be a good time to look at diversifying based on risk-tolerance and long-term needs. But to just immediately cash out her IRA is about the worst course of action she could possibly take--especially with high inflation, where the value of cash is going down every day.