Market Drops Are a Normal Part of Investing
When we look at data from almost the last hundred years, one thing becomes very clear: market declines happen every year in some form. A small 1% fall happens almost every year.
A 5% fall happens in nearly all years. Even a 10% drop is very common. Declines of up to 20% also appear regularly. This shows that short-term ups and downs are simply part of how markets move.
Bigger Declines Are Less Common but Still Expected
A fall of 20% or more does not happen every year, but it still appears once in a while. A 30% fall usually comes once in about ten years. A 40% fall happens roughly in six out of every hundred years. A 50% fall is rare and appears in only about two out of every hundred years. If someone stays invested for many decades, they will see a few deep declines. This is normal, and it is just part of a long journey in the market.
Long-Term Investors Must Face Volatility
If you have been in the market for the last five years and have seen declines of around 20% at most, that fits well with long-term statistics. Roughly every five years, a decline of 20–25% can appear. About once in ten years, a 30% decline can come. When you stay for the long run, you will face such tough years. These periods actually prepare you for the next strong phase of the market.
The Reward Comes From Handling the Tough Years
The reason long-term investors earn more than simply putting money in the bank is because they stay strong during volatility. Only those who handle declines, fear, and uncertainty earn the premium that the market gives. Most people enter at the top when everything is rising fast and exit when the market starts falling. They miss the real meaning of long-term investment. Learning comes only with experience, and every cycle teaches something new.
Quiet Phases Are Preparing the Ground for the Next Move
The last few years have not seen any major fall after the big drop during the Covid period. If the market has been slow or dull recently, it does not mean something is wrong. It simply means the market is preparing for the next move. This is the time to stay patient, stick to your plan, and build a strategy that naturally brings strong performers into your portfolio.
Staying Invested Is the Real Strategy
The key message is simple: remain invested, accept volatility, and let your strategy work over time. Long-term success comes not from reacting to every fall, but from understanding that such falls are normal and temporary. If you stay calm during the downs, you are more likely to enjoy the ups when they come.
