Dips in the market may rattle investors, but it’s important to have some perspective.
It’s normal for the market to pull back from time to time. In fact, since World War II, there have been 56 times when the market dipped between 5 and just under 10 percent. In each case, the market recovered over time.
The story is similar when you look at even deeper market declines. The Great Recession was in 2009. Many will remember there was significant volatility during those times, but we also need to remember the market not only recovered, it actually continued to thrive for many years afterwards.
Sometimes emotions get the best of us and we can be tempted to make knee-jerk decisions. It helps to take a moment, remember what history has taught us, and of course, to be patient.
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