How much of a market drop is normal in any given year?

Quite a lot, actually – and expecting it is what keeps you calm. Historically, the U.S. stock market has experienced an intra-year decline of around 10% or more in a large share of years, even in years that ended positive. Pullbacks of 5% happen most years, often more than once. Yet despite those scary dips, the market has finished the year up far more often than down over the long run. The lesson isn't that drops are rare; it's that they're routine and temporary noise on a generally upward path. Investors who understand this in advance are less likely to panic-sell when their balance turns red, because they were braced for it. A useful gut-check: if a normal 10–15% paper drop in your portfolio would make you sell, your stock allocation may be too high for your temperament – consider dialing it back before the next dip, not during it.