How to survive a correction

A 10% fall is a correction and happens roughly once a year. A 20% fall is a bear market and happens every few years. Bull markets last longer and rise by more than bears fall. None of this is unusual, and all of it feels unprecedented while it is happening.

The best days cluster inside the worst periods, often within days of the bottom. An investor who sells to avoid the fall reliably misses the rebound, because the rebound arrives while the news is still terrible. Missing a handful of the strongest days over a decade devastates long-run returns.

This is why 'get out and get back in when it is safe' fails. It never feels safe at the bottom. That is what a bottom is.

For each holding, ask whether the thing you wrote down when you bought it has actually broken. A falling price is not evidence. It is a fact about other people's mood. If the thesis is intact, a lower price makes it a better investment, not a worse one.

Rebalance back to your target allocation, which mechanically forces you to buy what has fallen. Keep contributing. Do not look at it daily. The most valuable investing skill is the ability to do nothing on purpose.