Instead of panicking when markets take a dip, why not prepare yourself for the inevitable? Like my Dad always used to say: Don't get me wrong. I am not a fan of Trump or his policies. But I do not believe for a minute that the most liquid and profitable companies in the world, which are run by the most rational and profit-motivated leadership in the world, can't figure out a way to manage around the likes of Trump.

When the unpredictable but inevitable market correction comes, Trump may very well be wreaking havoc in the world, but the correction will happen because it is time for a correction. The sellers will start outnumbering the buyers, which will naturally force the price of shares downward. Ready to hear some even more impressive numbers? Of course, sizeable corrections happen with such regularity that it kind of diminishes the meaning of "big one. Don't let the numbers fool you into thinking something unprecedented is happening.

A big market correction is inevitable — a wealth adviser explains how to prepare - Business Insider

These average market corrections are completely normal. Thus far, every time we've experienced a sizeable correction, markets have recovered in the fullness of time. So how should you respond to a point drop in the Dow? Save what you are supposed to save.

Invest what you are supposed to invest. Stay broadly diversified and rebalance your portfolio every year, in good markets and in bad. If you want to be even better than fine, take the next step down the path of mindfulness: Make a conscious, deliberate decision to resist panic and the deeply emotional and immediate need to react whenever markets take a dive.

It's tempting but foolish to believe you'll be able to get back in or out at the "right time. Responding with a calm, cool, level head works much better than reacting, in my book.

None of us knows when the next market correction is coming, but we do know that it is coming. And we also know that the pundits will proclaim that "this time is really different.

Investing Defining Pullbacks, Corrections and Bear Markets

DeYoe, AIF and CPWA, is the author of " Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend. Financial planning and investment advisory services offered through DeYoe Wealth Management, Inc. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations to any individual.

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Trending Tech Finance Politics Strategy Lifestyle Sports Video All. You have successfully emailed the post. A big market correction is inevitable — a wealth adviser explains how to prepare. Jonathan DeYoe Instead of panicking when markets take a dip, why not prepare yourself for the inevitable?

Corrections are a normal part of investing.

Higher market valuations translate into bigger point drops. Fourteen percent of the DJIA, which was valued at nearly 21, at a market peak in early March, would be over points.

The higher markets go, the bigger the point drops will sound to us, even when they are just average. And nothing could be further from the truth, in my humble opinion.

Patience, not fear, has won out. Why being awkward makes you more likely to succeed. Financial Crisis Great Recession Wealth Adviser Investing Your Money Wealth Your Money Saving. Recommended For You Powered by Sailthru. A big market correction is inevitable — a wealth adviser explains how to prepare A big market correction is inevitable — a wealth adviser explains how to prepare Instead of panicking when markets take a dip Featured Why big data can make HR more important.

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