March PIREP — Market Pullbacks are Normal and Healthy– Stay the Course

According to data from various sources, when the S&P 500 has a positive year, there is a high likelihood of experiencing an 8-10% correction within that year, with historical analysis showing that a significant portion of positive years will include a correction of this magnitude; in recent decades, this has occurred in roughly half of positive years.

Key points to remember:

• Market corrections are common:
  Even during positive years, the S&P 500 often experiences corrections of 10% or more.
• Recent trends:
  Over the past 20 years, around 50% of years with a positive S&P 500 return also experienced a 10% correction.
• Not always a negative impact:
  Despite a correction, the market can still end the year with a positive return.