How should investors react to market declines? Should they prevent losses by selling or buy more stocks at a favourable discount? Even then, when is the best time to do so?

Volatility is back in the markets after one and a half years of relatively smooth sailing and rising asset prices. But just how common are market declines and what do they mean for annual returns?

The market will eventually pull back — while there are some indicators that allow us to gauge the probability of a correction, we suggest that the best time to prepare yourself for such an event is now.

As massive losses hit the stock market, what should investors do to survive?

hat are some things NOT to do when the markets suddenly fall?

Just about every investor acknowledges the risk when investing in the market, but whenever bouts of volatility hit and headlines scream blood in the markets, logic flies out of the window and their flight or fight mode kicks in.

Our analysis of markets over a 15 year period shows that markets go up more often than come down. In fact, the best market days typically follow a correction.

Contrary to the beliefs of some investors, dramatic changes in security prices are not a sign that the financial system is broken but rather what we would expect to see if markets are working properly.