Without serious corrections there would be no risk premium paid to equities

Ben Carlson from A Wealth of Common Sense says “There are two types of investors out there today (and yes this is an extreme over-generalization): 1) Those who spend all their time obsessing over the next 5-10% correction and when it will happen; 2) Those who are becoming complacent to the risk of a correction or a bear market. Both stances are potentially dangerous because they set you up to over-react to the market’s movements. One of the first things you have to realize as an investor is that to earn a respectable return on your capital, you have to be willing to lose money on occasion — sometimes a lot of money. Losses are a normal part of a well-functioning market. Without occasional losses, stocks wouldn’t earn a risk premium over safer asset classes such as bonds and cash. Take a look at this chart I made which details the worst drawdowns* on the S&P 500 every single year since 1950.” (VIEW LINK)