Are market corrections healthy? In a word, “yes”. Are market pullbacks common? Very. Corrections prevent bubbles, which occur when market valuations are no longer supported by underlying earnings. Investors become speculators. When a bubble bursts, it can send shock waves throughout the market and economy. On the other hand, a correction, while at times disconcerting, is simply a value re-set. And, yes, that is healthy.

Why a January Market Correction Might be Good

Source: Financial Media Exchange