Even in economically positive years, it's crucial to acknowledge the inevitable presence of volatility in financial markets. Being prepared for the ups and downs is essential.
A 5% pullback in stocks occurs about 3 to 4 times a year, while a 10% correction is an annual event. Additionally, a bear market of 20% occurs, on average, every three years.
Thus, understanding and accepting these movements are essential for an informed and resilient investment approach.
