In a period of expansion, a 10% stock market correction every 12 months and a 20% correction every 12 to 18 months is normal, historically speaking. We have seen the Dow drop over 1000 points since last week and maybe the major indices will continue to drop to a support level of close to 20% devaluation since the most recent high. Don’t panic. Don’t take all your money out of stocks after they have lost 20%. Someone will make money on your losses. “The Gnomes of Wall Street” are just waiting on the sidelines. As soon as they determine they can make enough profit on their money, they will bring that money in from foreign accounts especially now that corporate taxes have come down from a high of 39% to 21%. There are corporate billions of dollars in Europe and Asia looking for a home…and that home without a doubt is Wall Street. Now that the stock prices have fallen, watch how fast they will recover again and soar to new highs. There is really no fundamental economic reason for this sudden drop in stock prices other than they increased so quickly that a slight correction is inevitable. Even if the Feds increase interest rates by 100 basis points next year, that will not be enough to cause a recession. Other aspects of the economy are still fundamentally sound. Read my book kindle ebook, DidoSphere’s The Simplest Path to Wealth available on Amazon Kindle to learn how to time the market so you may get out of stocks before the bear market that follows a recession.