There's always some pain to endure.
This chart shows S&P 500 intra-year declines compared with calendar year returns. The bars represent year-end returns since 1980, while the purple dots mark each year's market low.
Buy and Hold investors must stomach significant drawdowns to get their returns — even in 'good' years.
via JP Morgan Funds.
Basically, you have to understand that 10-15% pull-backs are normal (perhaps even healthy) for the market.
According to Business Insider, here are market correction averages and their historic frequency. Since 1900, we've seen:
- 5% market corrections: 3x per year.
- 10% market corrections: Once per year.
- 20% market corrections: Once every 3.5 years..