When Markets Drop 10%, Should You Panic? The Numbers Say No

Nasdaq and S&P 500 just tested correction levels (10% decline), sparking another round of media doom-scrolling. But here’s the reality check: 75% of corrections never become bear markets (20%+ drop).

Looking back to WWII, there were 48 corrections. Only 12 turned into bear markets. That’s your odds.

Now, the catch—there’s no way to know which correction is the dangerous one. But history shows something even more interesting: every bear market eventually got erased. The dot-com crash? The 2008 recession? Both look like tiny blips on a 30-year chart of S&P 500 returns.

The key insight: if you have years before needing the money, doing nothing historically works better than panic-selling. If volatility keeps you up at night, rebalance your portfolio. If you’re eyeing quality stocks that got hammered? Fear selling often creates the best entry points.

TLDR: corrections are noise. Bear markets hurt but heal. Your move depends on your timeline, not the headlines.