Preparing for the Next Market Correction:
A Mindset of Opportunity and Discipline
By: Mike Boosel
As we say goodbye to summer and enjoy the beautiful fall weather, I’ve recently been thinking about the excellent run the financial markets have enjoyed this year. It’s been a notably calm stretch in the equity markets since the brief but sharp “Tariff Tantrum” in April 2025. While volatility has surfaced in isolated sectors, we haven’t experienced a meaningful market correction—defined as a decline of 10% or more in major indices—since that episode. Historically, such corrections occur roughly once a year, making this period of relative tranquility both unusual and potentially misleading for investors who may be lulled into a false sense of permanence.
But as history has shown us time and again, corrections are not anomalies—they are ordinary, expected features of long-term investing. The key is not to predict when they will happen (because no one can), but to be mentally and financially prepared for when they do.
Corrections Are Normal—And Often Fleeting
From 1946 to 2016, the S&P 500 experienced 57 corrections, averaging one every 15 months. Despite this frequency, the index rose in 70% of those years and increased in value roughly 150-fold over that period. Even more telling, the average intra-year decline since 1980 has been 14.2%, yet long-term investors who stayed the course were rewarded with compounded returns well above inflation.
Corrections, while sometimes sharp and unsettling, have historically been short-lived. The average recovery time from a 10% decline is about eight months. The lesson? Reacting emotionally to short-term volatility is often more damaging than the correction itself.
Our Philosophy: Patience, Discipline, and Preparation
At The Boosel Ringwala Group, we don’t attempt to time the market or chase headlines. Instead, we focus on timeless principles that have guided successful investors through decades of market turbulence:
- Reinvest Dividends: Market downturns often present an ideal time to reinvest dividends at lower prices, enhancing long-term compounding.
- Buy Quality at a Discount: Corrections can offer rare opportunities to purchase high-quality companies at temporarily depressed valuations.
- Maintain Adequate Cash Reserves: A well-structured cash buffer allows investors to meet short-term needs without selling long-term investments at a loss.
- Avoid Panic: Emotional decisions—especially selling during downturns—have historically led to regret and missed recoveries.
- Trust in the Future: Faith in long-term progress, supported by patience and discipline, remains the cornerstone of successful investing.
No Predictions - Just Preparation
We certainly are not forecasting a correction or bear market! But we are always preparing for one. The absence of recent volatility does not mean it won’t return. When it does, our clients will be ready—not with fear, but with a plan.
Corrections are not crises. They are part of the journey. And with the right mindset, they can become opportunities to strengthen portfolios and reaffirm commitment to long-term goals. When the next correction/bear market does occur, we will be here to help guide you through it and process it as an opportunist – not a victim.
As always, we appreciate your trust and confidence in your plan and our team!
Retirement Planning Fundamentals Course Offered This Fall
This fall, our team has once again partnered with the Association of Financial Educators nonprofit organization to teach the Retirement Planning Fundamentals course in the Roswell & Alpharetta area.
Many of you have taken this educational and entertaining course before. Each course consists of 2 sessions. We teach in a friendly, relaxed atmosphere where participation and questions are encouraged!
The course sessions will be taught in September and October, and the registration period is now open. If you know someone who may have interest in taking the course, please feel free to forward this information to them. Here are the dates and location:
Alpharetta at Gwinnett Technical College,
2875 Old Milton Pkwy, Alpharetta, GA 30009
(Thursday Evenings from 6:15pm - 9pm) - September 25th & October 2nd
Roswell at the Roswell Adult Recreation Center
830 Grimes Bridge Rd, Roswell, GA 30075
(Tuesday Evenings from 6:15pm - 9pm) - October 7th & October 14th
Attendance is free, but there is a $59 materials fee.
You may have friends, family, or associate who may be interested in the course. If so, please feel free to forward this information/email to them!
Click here for more information or to register for the course.
Client's Corner by Nick Murray
THE ROUGHLY HUNDRED-YEAR RETURN OF LARGE - company common stocks in the United States - assuming dividends were left to compound - has been about 10% per year. The return of the most comparable corporate bond index - not exactly the same companies as in the S&P 500, but certainly the same caliber of companies - is about six percent.
Net of three percent inflation over this period, then, stocks have compounded at seven percent and bonds at three percent. Which is to say that equities have returned quite a bit more than twice what bonds did. These are facts.
Yet.....
(click here to view the article).
Digital Defense: Safeguarding Your Identity & Finances
In 2024, the Federal Trade Commission reported more than $12.7 billion in losses due to identity theft and related fraud. As life becomes increasingly digital, protecting your personal and financial information is more critical than ever.
Click here to view their discussion.
Odds & Ends
- Even though it can be tricky to stick to a plan in the heat of the moment, Mike Antonelli, Baird Private Wealth Management's Market Strategist, writes about why it's important to have one. Click here to read more.
- Ross Mayfield, Investment Strategist for Baird Private Wealth Management checks in with wages vs. inflation, job-hugging, and which industries gained jobs in the last year. Click here to read more.
- If you find yourself on a long car ride or simply enjoy listening to podcasts while working out, walking, etc., you might find the following Nick Murray interview that Morningstar recently conducted worthwhile. It's titled, "The Investor is Hardwired to Be His Own Worst Enemy" and can be found by clicking here.
The Boosel Ringwala Group at Baird
555 North Point Center E, Suite 500
Alpharetta, GA 30022
(678) 762-3000