History Says a Stock Market Correction Is Coming Eventually. Here's the Good News for Investors.

The article argues that a stock market correction, defined as a decline of at least 10%, will eventually happen, though it is not imminent given the strong economy and the market's resilience to the energy price spike from the Persian Gulf war. Corrections occur on average every 2.2 years, with an average decline of 21% including bear markets, and typically last about 115 days according to Yardeni Research. The U.S. market recovered from the 2022 correction and last year's correction and went on to reach new highs. For investors within three years of retirement, the author suggests becoming more defensive by increasing bonds, safe assets and defensive sectors such as healthcare, utilities and consumer staples, along with non-correlated assets like real estate, precious metals and commodities. Others should stick to their plan and avoid panic selling, keep three to six months of expenses in cash, and rebalance concentrated positions.

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