This year, investors experienced a market correction, a decline of at least 10% from a recent peak. Market corrections are typically common and also a healthy part of long-term investing.

The chart below shows that intra-year S&P 500 declines (red dot) have occurred in every year since 1980. On average, the market experienced a 14% decline. Despite average double-digit intra-year declines, the market ended the year with a positive return in 34 of 45 years, 76% of the time.

Corrections are also essential for a well-functioning market as they prevent asset bubbles and excessive speculation. They can also provide opportunities for new investors to buy at cheaper prices. The stock market is perhaps the only market where buyers get nervous when there is a sale.

Recent market volatility is an important reminder that markets don’t always go up in a straight line. Just as seasons change, so too does the stock market. By staying informed and sticking to one’s plan, investors can avoid common mistakes and turn corrections into opportunities.

Key Takaways

Market corrections are a normal and healthy part of investing, helping to maintain balance by curbing asset bubbles and speculation. Rather than reacting emotionally, investors who stay informed and committed to their long-term strategy can avoid costly mistakes and even uncover valuable opportunities along the way.

Have Questions About Navigating Market Volatility?

Market corrections can be unsettling, but you don’t have to navigate them alone. Our team is here to help you stay focused, stay informed, and stay on track toward your long-term goals.

Let's talk. Contact us today.

Johnathon Opet, CFP® is a financial advisor located at EmVision Capital Advisors, 251 W. Garfield Rd. ​Suite 155 Aurora, OH 44202. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (330) 954-3770 or at info@emvisioncapital.com.

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Advisor. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network®.

Important Information
This is for informational purposes only, is not a solicitation, and should not be considered investment, legal or tax advice. The information in this report has been drawn from sources believed to be reliable, but its accuracy is not guaranteed, and is subject to change. Investors seeking more information should contact their financial advisor. Financial advisors may seek more information by contacting AssetMark at 800-664-5345.

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Investments in equities, bonds, options, and other securities, whether held individually or through mutual funds and exchange-traded funds, can decline significantly in response to adverse market conditions, company-specific events, changes in exchange rates, and domestic, international, economic, and political developments.

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7880973.1 | 04/2025 | EXP 04/2027