(This is based on a research done by https://getmoneyrich.com/stock-market-correction/)
16 is the number of times that the market fell from 2009 to 2019 by more than 10% & still market has given > 14% over long term, handling stock market volatility & using it are the key to investing success.
So it is clear that markets will fall in the next 10 years also by more than 10% several times, so please do not panic during those times as market eventually recovers. Unless you use those dips to buy more you will never make money.
Based on the median analysis done in the above research, every time the index goes up by 13.7% or so, it corrects by about 10.90%. (looking at data from BSE500 2009-2019)
On an average it has taken about 2 months for each correction to end.
This should help us prepare our minds to accept volatility and help us buy on dips.
Unless we buy when markets corrects by 10% we are not going to compound our wealth in the best manner. Use this data as a broad direction and not an exact prescription on when to invest. Future is unpredictable and may follow a different pattern, but this data above should help us improve our odds of success or atlest help in reducing follys.
