"I advised him that it would not be a good idea because our view of things is that this is going to be OK, and he ought to be thinking about what to buy," said Stepherson, who is also the chief investment officer at Hardesty Capital Management in Baltimore.
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Ultimately, Stepherson's client agreed to unload only a quarter of his equity holdings — and to revisit his portfolio weekly.
Investors traditionally have approached bear markets with an eye for bargains. But market volatility — and fresh memories of the 2008 crash — have dampened the enthusiasm of many.
As Stepherson put it, investors such as his client, who is near retirement, are in "safety mode."
Investors continue to worry about another recession in the United States and debt in Europe. The Dow Jones industrial average closed last week at 10,817 after shedding 452 points over the five trading days.
It was the fourth straight week of losses for the stock market, which plunged Thursday after a few days of calm.
New economic data last week dimmed recovery hopes. Consumer prices climbed 0.5 percent in July, the fastest rate in four months, while more workers than expected claimed new jobless benefits last week.
The Philadelphia Federal Reserve Bank's business outlook index fell to minus-30.7 in August, the lowest since March 2009, when the economy was in recession.
"The real issue the market's struggling with here is the increased potential for another economic downturn," said John P. Hussman, the Ellicott City money manager who runs the Hussman Strategic Growth mutual fund. "From the whole constellation of data that we're seeing, we haven't observed that constellation except during the recession or just prior to that. The odds are more challenging here."
Some investors are finding opportunities in the up-and-down market. Mutual fund managers are snatching up stocks in sectors that are poised to grow in a down economy, while some companies and corporate leaders are taking advantage of depressed prices to buy back shares.
Chip Morris is maxing out his 401(k) contributions to buy up stocks he describes as "bargains."
"I'm buying like crazy," Morris said, who says at 55 he has some time to wait for a recovery. "Everything's a bargain."
But Morris, who splits his time between Annapolis and Ocean City, is not putting all his money into one basket. When the debt ceiling debate began two months ago, he decided to go into defensive mode, just as he had done in 2007.
"I knew the markets were going to take a hit," said Morris, who works in the insurance industry.
So he rolled much of his 401(k) money into more stable funds, such as money markets.
"The truth is you've got to be a little smarter as you get older," Morris said. "You try to protect your assets as best you can."
Some investors are shunning the stock market altogether — at least for now.