The Wisdom of Rip Van Winkle

Did you know… on average, since 1900 there has been a market correction of 10% 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?