Don't panic when the market corrects

After the incredible bull market experienced in 2021, it's easy to feel that the recent market correction is a harbinger of things to come. I can't predict the future. Rising interest rates, higher inflation, Covid and international tensions can exacerbate market volatility, which has been true in the early days of 2022. It's important to understand that corrections (defined as a 10% pull back from recent highs) happen all the time. In fact, they more often provide a springboard for a sharp market rebound. Bear markets require a decline of 20% or more, which also aren't rare. One should always have cash or cash equivalents in hand as a buffer against unexpected financial events. But when it comes to one's long-term investment plan, the worst option is to sell into a correction only to buy back later in an upswing at higher prices. It's painful to ride out these periods. I recommend going for a walk, getting some fresh air and focusing on loved ones.