Many ask this question now," Should we invest in stocks at all"??. Exactly an year before we were in big euphoria....remember the Reliance power IPO for which 1000s of demat accounts were opened.
First was the sub prime crisis leading to global economic slow down, then the raising commodity prices ( which cooled down ultimately), latest to the story is the Satyam fiasco. So, should we restrain from the stock markets because of all these reasons. I would say "no". Ups and downs are a part of life . One off events do happen in all walks of life. We don't restrain from taking a road because it is prone to accidents. Similarly we cant avoid investing since one or two companies go bust. But we have to do it with precaution. By choosing to invest a right part of your portfolio in stocks and investing in a diversified and systematic fashion.
History repeats itself and if you look at history, the markets have overcome many such bad years. To overcome these bad patches one needs absolute patience. " Time and patience cures everything ( including your losses :-)). Definitely equity investment is a long term game and patience is key to any investor.