A steady flow of negative news in recent weeks has disrupted the stock market’s latest bullish run. The U.S. debt ceiling debate and concerns about China created volatility that has sent the S&P 500 index down as much as 5% from record highs set just over a month ago.
But volatility and healthy corrections are nothing new for the stock market. In fact, most years we typically see at least a 5% down move at some point. What’s important is not to panic, and remember that no negative event has ever permanently derailed the U.S. markets.