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Tame the market with seven facts to conquer your stock fears

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Embrace the upside: Understanding and navigating stock market corrections

If the idea of stock market corrections makes you nervous, you’re not alone.

However, understanding the truth about stock market corrections can free you from fear and empower you to take control of your financial future.

The fact is, corrections and even crashes are a natural part of the market cycle, and fearing them can cost you more than the corrections themselves ever could.

Investing is a participation game, and sitting on the sidelines out of fear may be the biggest financial mistake you can make.

Let’s explore seven essential facts about stock market corrections and how they can help you overcome the fear of investing.

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Corrections Are Normal

The first fact that will free you from the fear of stock market corrections is that they happen frequently—about once a year, on average, since 1900.

A correction, defined as a market drop of 10% or more from a recent high, is a routine event.

Corrections occur for many reasons, from geopolitical uncertainty to economic reports that don’t meet expectations and even dare I say it, market manipulation!

They’re not a sign of doom; they’re part of the market’s natural rhythm.

Understanding that corrections are a regular occurrence can shift your mindset.

Instead of seeing them as a threat, you can view them as an opportunity to buy stocks at lower prices.

History shows that the market eventually recovers and continues its upward trend, rewarding those who stay invested.

FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange

Most Corrections Don’t Become Bear Markets

Another reassuring fact is that less than 20% of all corrections turn into bear markets, which are defined as declines of 20% or more. The last 20% plus correction we saw was the first six months of 2022.

This means that the majority of corrections are temporary pullbacks rather than prolonged downturns.

While corrections can feel unsettling, they’re rarely the beginning of a sustained decline.

By keeping this fact in mind, you can avoid making emotional decisions during market dips.

Instead of selling in a panic, focus on your long-term goals and remember that most corrections resolve quickly.

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Nobody Can Predict Market Movements Consistently

The fear of corrections often stems from a desire to predict the market’s next move. But the reality is that nobody can consistently forecast whether the market will rise or fall.

Even seasoned professionals and economists get it wrong more often than not. I often find myself talking about people like Robert Kiyosaki and Jim Cramer who are famous for their big claims about the market and being wrong, repeatedly!

This unpredictability highlights the futility of trying to time the market.

Instead of attempting to guess when a correction will happen, adopt a long-term investing strategy.

Staying invested through market ups and downs ensures you don’t miss the eventual recovery and growth.

The Market Rises Over Time

Despite short-term setbacks, the stock market has a long history of rising over time.

From 1926 to today, the S&P 500 has delivered an average annual return of about 10%.

This growth includes periods of corrections, bear markets, and even major crashes that includes the pandemic.

The lesson here is clear: the market’s upward trajectory rewards patience and consistency.

Short-term volatility is a small price to pay for long-term gains. By staying invested, you allow compounding to work in your favour, growing your wealth over time.

Bear Markets Are Rare and Temporary

Historically, bear markets—declines of 20% or more—have occurred about every three to five years.

While they can be unsettling, they are temporary and eventually give way to bull markets.

The average length of a bear market is about one year, while bull markets can last for several years, far outweighing the declines.

Knowing that bear markets are infrequent and short-lived can help you maintain perspective. Instead of fearing them, view them as part of the natural cycle that leads to long-term growth.

In fact, bear markets can be a good time to purchase stocks that you have identified as good long term growth prospects and add to them at the reduced prices, while others are exiting in fear.

I call this turning the tables and becoming a professional of the market.

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Pessimism Turns to Optimism

Another key fact is that bear markets inevitably give way to bull markets.

Pessimism about the economy or corporate earnings is eventually replaced by optimism as conditions improve.

This cycle of negative sentiment turning positive is what drives market recoveries and new highs.

Understanding this dynamic can help you stay calm during periods of market stress.

When others are panicking, remind yourself that optimism and growth are on the horizon.

Staying invested allows you to participate in the recovery.

The Greatest Danger Is Staying Out of the Market

Perhaps the most important fact is that the biggest danger to your financial future isn’t a market correction or crash—it’s being out of the market entirely.

Missing just a few of the market’s best days can have a devastating impact on your long-term returns.

For example, if you missed the 10 best days in the market over a 20-year period, your returns would be significantly lower than if you had stayed invested throughout.

Let that sink in for a moment, just 10 days, and they aren’t published beforehand for everyone to know when they are coming.

This highlights the importance of participating in the market, even during periods of volatility.

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Conclusion: Embrace Stock Market Corrections

The fear of stock market corrections often stems from misunderstanding their frequency, impact, and role in the investing process.

By embracing these seven facts, you can shift your perspective and see corrections for what they are: temporary setbacks that lead to long-term growth.

The key takeaway is clear: fear of what might happen is costing you your financial future.

Investing is a participation game, and staying on the sidelines guarantees you’ll miss out on the market’s growth. Take control of your financial future today, embrace corrections as part of the journey, and focus on the long-term rewards of staying invested.

Andrew Woodward is the Founder of The Investor’s Way and host of Investment Insights on Ticker.

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Israel and Hamas agree ceasefire deal – what we know so far

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Scott Lucas, University College Dublin

After two years of violence and the deaths of 68,000 Palestinians and more than 1,200 Israelis, most of them civilians, it has been reported that Hamas and the Netanyahu government will sign a phase 1 ceasefire agreement.

This is the first part of a 20-point plan promoted by the US president, Donald Trump, and supported by the major Arab power brokers in the region.

What we know so far is that Israel will cease its military assault in Gaza. Hamas, meanwhile, has agreed to free the remaining 20 Israeli hostages still alive in Gaza.

The Conversation’s international affairs editor Jonathan Este spoke with Scott Lucas, a Middle East expert at University College Dublin, who addressed several key issues.

How is this different to previous ceasefire agreements?

Until we have details, this agreement is similar to the phase 1 60-day ceasefire at the start of 2025. There is a pause in the killing, particularly from the Israeli side, but lasting arrangements remain to be confirmed.

The key difference is that Hamas released only some hostages and bodies in the previous ceasefire. This time they are freeing all hostages and the bodies which can be collected, in return for a still unannounced number of Palestinian detainees released from Israeli prisons.

That gives up Hamas’s main leverage against not only Israeli attacks but also the Netanyahu government’s occupation and veto on aid to Gaza.

So key elements of a lasting deal – the extent of the Israeli military’s withdrawal, the restoration of aid, the establishment of governance and security in the Strip – will rest on guarantees and who provides them.

What are the possible sticking points for the rest of the deal?

The immediate “sticking points” are whether central provisions will be agreed in further discussions.

The Israelis will demand complete disarmament by Hamas and possibly the expulsion of some of its officials. Hamas is likely to respond with rejection of any forced removals and its retention of “defensive” weapons.

The make-up of the international “board” overseeing the strip is vague beyond Donald Trump declaring himself the chair and no provision for any Palestinian representation. Hamas will probably seek some Palestinian membership.

At this point, the International Stabilization Force for the Strip is a wish rather than a plan. Israeli agreement to a force replacing its military in Gaza is far from assured, especially as it is not clear who will contribute personnel. The Italian foreign minister, Antonio Tajani, has offered to send troops to contribute to the force.

The plan for a day-to-day government to administer the Strip is equally sketchy. While the presence of Palestinian technocrats is mentioned in Trump’s “plan”, we do not know who these will be. We know that Hamas is excluded. Israel is also likely to veto the Palestinian Authority in the short-term. And the release from imprisonment of potential Palestinian leaders – such as Marwan Barghouti, who has been held by Israel for more than 20 years – is not confirmed.

And before consideration of all of these, there is the question of the far-right in the Netanyahu cabinet. The finance minister, Bezalel Smotrich, and national security minister, Itamar Ben-Gvir, have yet to comment on the latest news, but have previously opposed any deal short of the “total” defeat of Hamas and a long-term Israeli occupation. Neither have threatened to block the agreement – so far – but they have expressed opposition.

How much of this is due to pressure from Arab states?

While many headlines are likely to give the credit to Trump and his envoys, son-in-law Jared Kushner and real estate developer Steve Witkoff, the role of Arab states has been vital.

A month after Israel shattered Qatar’s sovereignty with the airstrike trying to assassinate Hamas’s negotiators, the Gulf state and Egypt were the brokers of this Phase 1 agreement. Behind the scenes, other Arab states and Turkey were urging Hamas to accept the Trump “plan” in principle and to reach a deal to release the hostages.

Those states will be needed for the next phase, particularly if Trump threatens to return to his previous position of a blank cheque for Israeli military operations and cut-off of aid.

Is there a future for Palestinian civilians in Gaza?

I hope so. The immediate issue is survival. The Israeli attacks have been paused. The urgent issue is getting essential aid into the Strip. Then it is a matter of being able to return to what is left of homes. The Trump administration has dropped its talk of displacement, stemming the demand of Netanyahu’s far-right ministers for the removal of many Gazans.

However, after two years of scorched-earth tactics by Israel, little is left of many of those homes. The majority of the health sector has been destroyed, as have many schools and other public buildings. Rafah has been razed, and Gaza City’s high rises have been blown apart.

Recovery cannot just focus on the profits to be made – including for Trump, Kushner, and Gulf state business interests – from the “development” of Trump’s “Riviera of the Middle East”. It has to begin with day-to-day subsistence for the civilians who have paid the heaviest price in this mass killing.

Does Trump get his Nobel peace prize now?

I don’t care. Sometimes good things happen from a convergence of cynical and self-serving motives. Trump is desperate for the Nobel peace prize because Barack Obama received it in 2009. Kushner, whose investment fund is bankrolled by Saudi Arabia and Qatar, and Gulf state entrepreneurs see the possibility of large profits. US-Gulf relations need to be repaired after the shock of Israel’s airstrike inside Qatar.

If that means lives are saved, fine. But those lives need to be saved not just for today or tomorrow. They need to be respected and supported with a lasting agreement for security and welfare.

And that would mean a two-state solution for both Palestinians and Israelis – something which the Netanyahu government and the Trump administration will not countenance. For Netanyahu and his ministers are devoted to expanding Israel’s illegal settlements, with the accompanying threat of violence, in the West Bank.

Celebrate phase 1 on the behalf of the Israeli hostages, their families, and Gaza’s civilians. And be clear about what is needed for phase 2, phase 3 and beyond.The Conversation

Scott Lucas, Professor of International Politics, Clinton Institute, University College Dublin

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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The Supreme Court is headed toward a radically new vision of unlimited presidential power

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In a series of cases over the past 15 years, the Supreme Court has moved in a pro-presidential direction.
Geoff Livingston/Getty Images

Graham G. Dodds, Concordia University

President Donald Trump set the tone for his second term by issuing 26 executive orders, four proclamations and 12 memorandums on his first day back in office. The barrage of unilateral presidential actions has not yet let up.

These have included Trump’s efforts to remove thousands of government workers and fire several prominent officials, such as members of the Corporation for Public Broadcasting and the chair of the Commission on Civil Rights. He has also attempted to shut down entire agencies, such as the Department of Education and the U.S. Agency for International Development.

For some scholars, these actions appear rooted in the psychology of an unrestrained politician with an overdeveloped ego.

But it’s more than that.

As a political science scholar who studies presidential power, I believe Trump’s recent actions mark the culmination of the unitary executive theory, which is perhaps the most contentious and consequential constitutional theory of the past several decades.

A prescription for a potent presidency

In 2017, Trump complained that the scope of his power as president was limited: “You know, the saddest thing is that because I’m the president of the United States, I am not supposed to be involved with the Justice Department. I am not supposed to be involved with the FBI, I’m not supposed to be doing the kind of things that I would love to be doing. And I’m very frustrated by it.”

The unitary executive theory suggests that such limits wrongly curtail the powers of the chief executive.

Formed by conservative legal theorists in the 1980s to help President Ronald Reagan roll back liberal policies, the unitary executive theory promises to radically expand presidential power.

There is no widely agreed upon definition of the theory. And even its proponents disagree about what it says and what it might justify. But in its most basic version, the unitary executive theory claims that whatever the federal government does that is executive in nature – from implementing and enforcing laws to managing most of what the federal government does – the president alone should personally control it.

This means the president should have total control over the entire executive branch, with its dozens of major governmental institutions and millions of employees. Put simply, the theory says the president should be able to issue orders to subordinates and to fire them at will.

President Donal Trump appears seated in the oval office.
President Donald Trump signs executive orders in the Oval Office next to a poster displaying the Trump Gold Card on Sept. 19, 2025.
AP Photo/Alex Brandon

The president could boss around the FBI or order the U.S. attorney general to investigate his political opponents, as Trump has done. The president could issue signing statements – a written pronouncement – that reinterpret or ignore parts of the laws, like George W. Bush did in 2006 to circumvent a ban on torture. The president could control independent agencies such as the Securities and Exchange Commission and the Consumer Product Safety Commission. The president might be able to force the Federal Reserve to change interest rates, as Trump has suggested. And the president might possess inherent power to wage war as he sees fit without a formal authorization from Congress, as officials argued during Bush’s presidency.

A constitutionally questionable doctrine

A theory is one thing. But if it gains the official endorsement of the Supreme Court, it can become governing orthodoxy. It appears to many observers and scholars that Trump’s actions have intentionally invited court cases by which he hopes the judiciary will embrace the theory and thus permit him to do even more. And the current Supreme Court appears ready to grant that wish.

Until recently, the judiciary tended to indirectly address the claims that now appear more formally as the unitary executive theory.

During the country’s first two centuries, courts touched on aspects of the theory in cases such as Kendall v. U.S. in 1838, which limited presidential control of the postmaster general, and Myers v. U.S. in 1926, which held that the president could remove a postmaster in Oregon.

In 1935, in Humphrey’s Executor v. U.S., the high court unanimously held that Congress could limit the president’s ability to fire a commissioner of the Federal Trade Commission. And in Morrison v. Olson the court in 1988 upheld the ability of Congress to limit the president’s ability to fire an independent counsel.

Some of those decisions aligned with some unitary executive claims, but others directly repudiated them.

Warming up to a unitary executive

In a series of cases over the past 15 years, the Supreme Court has moved in an unambiguously unitarian, pro-presidential direction. In these cases, the court has struck down statutory limits on the president’s ability to remove federal officials, enabling much greater presidential control.

These decisions clearly suggest that long-standing, anti-unitarian landmark decisions such as Humphrey’s are on increasingly thin ice. In fact, in Justice Clarence Thomas’ 2019 concurring opinion in Seila Law LLC v. CFPB, where the court ruled the Consumer Financial Protection Bureau’s leadership structure was unconstitutional, he articulated his desire to “repudiate” the “erroneous precedent” of Humphrey’s.

Several cases from the court’s emergency docket, or shadow docket, in recent months indicate that other justices share that desire. Such cases do not require full arguments but can indicate where the court is headed.

In Trump v. Wilcox, Trump v. Boyle and Trump v. Slaughter, all from 2025, the court upheld Trump’s firing of officials from the National Labor Relations Board, the Merit Systems Protection Board, the Consumer Product Safety Commission and the Federal Trade Commission.

Previously, these officials had appeared to be protected from political interference.

President George W. Bush appears with several soldiers.
President George W. Bush signed statements in 2006 to bypass a ban on torture.
AP Photo/Pablo Martinez Monsivais, File

Total control

Remarks by conservative justices in those cases indicated that the court will soon reassess anti-unitary precedents.

In Trump v. Boyle, Justice Brett Kavanaugh wrote, “whether this Court will narrow or overrule a precedent … there is at least a fair prospect (not certainty, but at least a reasonable prospect) that we will do so.” And in her dissent in Trump v. Slaughter, Justice Elena Kagan said the conservative majority was “raring” to overturn Humphrey’s and finally officially embrace the unitary executive.

In short, the writing is on the wall, and Humphrey’s may soon go the way of Roe v. Wade and other landmark decisions that had guided American life for decades.

As for what judicial endorsement of the unitary executive theory could mean in practice, Trump seems to hope it will mean total control and hence the ability to eradicate the so-called “deep state.” Other conservatives hope it will diminish the government’s regulatory role.

Kagan recently warned it could mean the end of administrative governance – the ways that the federal government provides services, oversees businesses and enforces the law – as we know it:

“Humphrey’s undergirds a significant feature of American governance: bipartisan administrative bodies carrying out expertise-based functions with a measure of independence from presidential control. Congress created them … out of one basic vision. It thought that in certain spheres of government, a group of knowledgeable people from both parties – none of whom a President could remove without cause – would make decisions likely to advance the long-term public good.”

If the Supreme Court officially makes the chief executive a unitary executive, the advancement of the public good may depend on little more than the whims of the president, a state of affairs normally more characteristic of dictatorship than democracy.The Conversation

Graham G. Dodds, Professor of Political Science, Concordia University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Does AI pose an existential risk? We asked 5 experts

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Sean Gladwell/Getty Images

Aaron J. Snoswell, Queensland University of Technology; Niusha Shafiabady, Australian Catholic University; Sarah Vivienne Bentley, CSIRO; Seyedali Mirjalili, Torrens University Australia, and Simon Coghlan, The University of Melbourne

There are many claims to sort through in the current era of ubiquitous artificial intelligence (AI) products, especially generative AI ones based on large language models or LLMs, such as ChatGPT, Copilot, Gemini and many, many others.

AI will change the world. AI will bring “astounding triumphs”. AI is overhyped, and the bubble is about to burst. AI will soon surpass human capabilities, and this “superintelligent” AI will kill us all.

If that last statement made you sit up and take notice, you’re not alone. The “godfather of AI”, computer scientist and Nobel laureate Geoffrey Hinton, has said there’s a 10–20% chance AI will lead to human extinction within the next three decades. An unsettling thought – but there’s no consensus if and how that might happen.

So we asked five experts: does AI pose an existential risk?

Three out of five said no. Here are their detailed answers.

The Conversation

Aaron J. Snoswell, Senior Research Fellow in AI Accountability, Queensland University of Technology; Niusha Shafiabady, Associate Professor in Computational Intelligence, Australian Catholic University; Sarah Vivienne Bentley, Research Scientist, Responsible Innovation, Data61, CSIRO; Seyedali Mirjalili, Professor of Artificial Intelligence, Faculty of Business and Hospitality, Torrens University Australia, and Simon Coghlan, Senior Lecturer in Digital Ethics; Deputy Director, Centre for AI and Digital Ethics, The University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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