I'm with #2; low income means you need every source possible, and rising stocks mean higher dividends. While your tax burden might be higher at the end of the year, you don't have to worry about day-to-day until then, and you have time to make other plans or arrangements.
There are also tax considerations, and you might be more likely to sell stocks when your income falls not just because you need the money but because there is less tax penalty if your overall gross income is lower. You might also consider converting them to preferred stocks or other investment classes that generate income while you hold on to them.
As has been explained in previous posts, there are a variety of considerations that interrelate - your question is not as easily answered as it might appear on the surface.
Obviously, if my income was falling, the most valuable investment would be stocks that were yielding increasing dividends to help offset the loss of other income.
I guess I agree with...
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