Is this pullback something long-term investors should be concerned about? We don't think so. Here's why:
1. Stock Market Volatility is Normal
The market's unbroken march upward in 2013 caused many investors to forget what market turbulence looks like.
With so many forces at work in the stock market, it is difficult for one particular trend to last for a sustained period of time. The market is positive 7 out of 10 years, but the standard deviation of 20% around the long-term average of 10% would make anything between 0% and 30% normal. Rarely does the market advance higher without