The stock market has fallen more than 10% from its recent highs. By definition, this is considered a market correction.
As an investor and, more importantly, as a human being, the healthy perspective is to keep one's own negative sentiment in check--to separate oneself from the crowd--to focus more on the personal economy and less on the world economy--to remember that total well-being does not need to be completely dependent upon financial well-being.
You may need to correct the correction, if you will, in your mind.
From the financial perspective, it is important to reflect upon your own objectives for investments before forming any conclusions about market directions and especially before making hasty market timing moves. For example, if your investment time horizon is 10 years, you should expect to see a 5 to 20% decline in stock prices several times over the course of that time horizon.
"A straight oar looks bent in the water. What matters is not merely that we see things but how we see them." ~ Michel de Montaigne
Market corrections may be considered a healthy aspect of a larger bull market trend; ebs and flows are natural in the course of economic and market cycles. However, it is unlikely the investor herd will take this market over the cliff into a full-blown bear market trend, at least not quite yet.
According the Wall Street Journal, the most recent Price/Earnings Ratio of the S&P 500 is 14.98, with forward estimates at 12.55. In translation, stocks may be considered "fairly priced." Of course, prices can always go lower but bear markets most often begin at higher, over-priced levels.
"Worry is a thin stream of fear trickling through the mind. If encouraged, it cuts a channel into which all other thoughts are drained." ~ Arthur Somers Roche
Above all, the negative sentiment arising from distressed world economies and capital market declines need not be an eroding factor of your total well-being. Money that is invested in securities, such as stocks, bonds and mutual funds, does not represent money needed for your livelihood in the present; it represents future financial security; it does not exist to support the basic physiological needs of food, shelter and clothing; and once those needs are met, there is no good reason for temporary financial setbacks to erode at other areas of well-being, such as emotional and spiritual.
In summary, worry over your finances can paradoxically harm your finances but it can also harm all other areas of your life. When we experience financial market corrections, for the sake of your total well-being, it is important to go on living your life and to allow nature to take its course. To end appropriately with Johann Wolfgang von Goethe: "Life is about life and not the result of life."