Did you know… on average, since 1900 there has been a market correction of 10% annually?
Yes, ANNUALLY.
Every year the market is down 10% at some point between January 1st and December 31st.
And 5% corrections happen 3 times per year on average.
The markets had a 10% correction back in January-February. But only after shooting up 6%.
Up 6% – down 10% – for a net of -4%. All inside of 6 weeks. If you squint real hard, you can see that as a 10% correction.
Cool. We’re average!
But then we recovered 3.5%. And now we’re down -0.55% for 2018.
If you had Rip Van Winkled it since January 1st and woke up to see your portfolio down 0.55%, would you Chicken Little it the rest of the year worrying about the 5% corrections yet to come?
Or would you just go back to sleep?
