Market corrections hurt. They can come out of nowhere. And when they do, they ignite fear, amplify worries, and set off alarm bells.
It’s hard not to panic when that happens. And it’s tempting to react and want to pull back.
Many people give in to that temptation.
Informed investors don’t.
Because they know most market corrections are short.
In fact, over the past 70 years, corrections have been getting shorter and shorter. These days, the average correction is over within four months.
Those are just a couple of reasons why you shouldn’t panic over corrections. Below are more.
If you know these facts about corrections, you can keep a level head and healthy perspective whenever the markets retreat. That can help you avoid overacting. It may even open your eyes to new opportunities.
Below is an overview of some market correction facts, click here to view our monthly newsletter and read more details about them.
Here are 7 things that you need to know about market corrections:
- Market corrections aren't always bad for markets
- A market correciton isn't a crash.
- Market corrections aren't rare.
- A few factors usually contribute to market corrections.
- Media headlines exaggerate the severity of any market crash.
- Don't panic and sell.
- Average investors get hurt by market corrections.
If you can stay calm and can see past the temporary shakeups, you can potentially be in a much better position to enjoy the eventual recovery.
As advisers, our job is to provide a calm, reassuring presence during times of turmoil and uncertainty. We are here to help our clients avoid panicked reactions and stay focused on the big picture.
If you’re having a hard time staying cool when markets retreat, let’s talk. Call our office at 561-447-1997.
Now may be a good time to reassess your financial strategies and risk tolerance. If you need to make prudent changes or switch gears, we’ll let you know.