I cloud on my Imac with Mountain Lion - signing out means losing contacts, etc.

Help.  I have tried to sign out of I cloud on my Imac with Mountain Lion but it says if I do so it will either delete my contacts, documents, etc. from the computer. Something is not right here.  How can I prevent this from happening?  Thank you.

You have to remember that your email, calendars and contacts live on the iCloud server, not on your Mac, and your Mac reads them from there (like webmail)*. So if you sign out, you don't affect the actual data in any way because it's still on the server, but your Mac loses access to it. When you sign back in it's all still there.
However, as Julian says, there is no reason to sign out unless you are actually having a technical problem that may be solved by signing out and in again. The whole idea is to stay signed in at all times.
*Just to clarify, your Mac maintains a cached copy of the data to speed things up, and so that you can still see it when you are signed in but have no internet connection; but this cache is deleted when you sign out. For practical purposes you can ignore it. As with all caches (and your Mac has a lot) it's hidden (hence the name) and can't be regarded as an actual copy.

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