The market being down can be unnerving, but it is actually quite normal. On average, the S&P 500 has seen a decline of 10% or more every 3 years. Historically, these declines have always been followed by recoveries to new and higher levels.
So keep your investment time frame in mind when a downturn happens! Investing during the middle of the tech bubble in 2001, or the housing crisis in 2008 probably felt uneasy. But those who held on during these times were likely rewarded.
So, for people who invest for a long time, buying stocks when the market is down can be like getting a good deal or finding things on sale. It's important to know that just because things happened a certain way in the past doesn't mean they'll happen the same way in the future. But knowing what happened before can help us understand what might happen next — and that the market goes up and down a lot!
Remember, you can and should always update any changes to your investment timeframe, goals, or risk tolerance on your investment profile page!
For more on what you should do when the market is down, see the following Learn articles:
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