Watching financial markets recently, you might be reminded of when you were a child watching a pot of water boil at your grandma’s house. “A watched pot never boils,” your grandma may have told you. If you were a stubborn child, you will know that the water did eventually boil, but it seemed to take forever.

With high valuations, peak economic and earnings growth, fading stimulus, supply disruptions and looming Delta variant fears, many investors are watching for a correction, defined as a 10% fall in stocks. Corrections are normal—they happen roughly every eight months on average going back to 1928. Legendary investor Peter Lynch once said, “More people lost money waiting for corrections and anticipating corrections than in the actual correction.” Sticking to long-term risk and return objectives is still prudent.

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The Quarterly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.