What a Stock Market Correction Really Means – and Why It’s Not the End of the World For Monmouth County, New Jersey

Jan 14, 2015 | Stock Market

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Did your elementary school teacher ever correct your grammar in front of the class? Do you still feel that pang of embarrassment after all these years?

Stock market corrections can also leave an indelible mark on investors – sometimes causing them to abandon the market and stymie their retirement savings in the process.

Corrections signify at least a 10% drop from the recent stock market high. And not unlike your teacher’s scribbled proofreading marks, they can be difficult for many investors to understand.

Why has the market tanked so suddenly?

What does this mean for my retirement?

Shouldn’t I pull out now before it gets worse?

These are all questions I commonly hear from my Monmouth County stock investing clients.

Why a Stock Market Correction is Not the End of the World

A 10% stock market decline is nothing to sneeze at, especially during flu season. In fact, several past stock market corrections have been associated with fear caused by illness outbreaks. The worldwide Ebola panic contributed to our most recent correction in September 2014.

But corrections are hardly the end of the world. Why? The market has bounced back after each and every one.

Take the September 2014 correction. By December, the stock market had already rebounded, boasting incredible highs and a historically low volatility.

Making a Correction Work for You

Wherever you live – whether in Middletown, New Jersey; Red Bank, New Jersey; elsewhere in Monmouth County, New Jersey; or completely across the country – you can make the next stock market correction work for you. How? By using it as an opportunity to become a better investor.

The more experience you have weathering stock market volatility, the more likely you are to grow your Middletown, New Jersey retirement investments via stocks. So don’t dread the next correction; embrace it as a chance to improve your stock investing skills and grow your nest egg.

 

About ValueAligned® Partners

Are you a stock market investor in Red Bank, New Jersey or Middletown, New Jersey? How did you react during the most recent correction in September 2014?

I’m your local Monmouth County financial advisor, and I help investors like you learn how to weather stock market downturns, including corrections, every day.

Want help with your retirement investing strategy? I’m happy to help with whatever you need, and I’m never more than an email or a phone call away at david@www.valuealigned.com or 732-800-2375.

Image Credit: jppi | morguefile