Rough start to the new year.
The Dow and the S&P remain in 'pullback' territory (-7.27% and -8.73% respectively). And the Nasdaq remains in 'correction' territory (-15.1%).
Pullbacks, which are defined as a decline between -5% and -9.99%, happen on average of 3-4 times a year.
And corrections, which are defined as a decline between -10% and -19.99%, happen roughly once a year.
The Dow and the S&P pulled back 3 times last year. But ultimately gained 18.7% and 26.9% for the year.
The Nasdaq corrected once last year, and finished with a gain of 21.4%.
So what we're seeing right now is not unusual. In fact, pullbacks and corrections are common.
Every bull market has them.
While they're never fun when they're happening, if you know these are commonplace moves, you can instead look at them as opportunities to buy rather than places to sell.
For me, each additional step back means we are getting closer to the pullback/correction being over. Not to mention the opportunity of getting in at even cheaper prices.
And the sooner we can get this over with, the sooner we can get back to the bull market rally.
