Rules to Counter the Market Crash
Markets crash. On average, the market falls 10% once a year, about 20% every four or five years, about 30% every decade, and 50% a few times during your lifetime.
I used to think weathering market downturns should be easy. The market always recovers and reaches new highs. As Charlie Munger puts it:
“You can argue that if you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit...