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Over the past few weeks, the major U.S. stock market indexes have tumbled into correction territory. Of course, falling stock prices lead to news reports filled with warnings about continued price declines, the potential for a bear market, and even an economic recession.

Every time stock prices enter a downturn, news outlets and many investors panic, fearing the worst. If those making noise about recessions and bear markets studied history, they would understand that corrections like the one we saw in the 2025 first quarter are really just a routine part of investing in stocks.

For clarification, a market correction typically involves a 10% decline in the major stock market indexes. If the decline exceeds 20%, the downturn will be classified as a bear market.

Recently, Charlie Bilello released some helpful data in his Week in Charts email.

From 1980 through 2024, the S&P 500 experienced an average per year decline of 14.1%. Yet, over that period, the S&P 500 generated an average annual return of 12.1%. Corrections and bear markets happen, but over time, the market puts them in the rearview mirror.

Since the bottom of the Great Financial Crisis bear market in March 2009, the S&P has seen 30 (yes, 30!) corrections of 5% or greater. The average decline was 7.6%. Ten of the drops exceeded 10%, and four of those in 2011, 2018, 2020, and 2022 reached bear market territory.

BUT…

If you had stayed invested in an S&P 500 ETF from March 2009 to the present, you would have achieved a total return of 1,000%. Yes, one thousand percent! That level of gains would have turned $1,000 into $10,000.

The lesson is not to give in to fear and sell when the market goes into a correction. If you stand pat, stock prices will recover, and your wealth will be fine. If you can make added investments during downturns, you will be that much wealthier coming out the other side of the decline. You can find some very nice high-yield investments selling at fire sale prices: you’ll collect dividends and watch your shares climb in value.

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