A market downturn is a temporary decline in asset prices within a general trend, whether upward or downward. It is considered a natural part of the market cycle and results from several reasons such as profit-taking by investors after price increases, changes in monetary policies that affect asset values, or major economic events like inflation or recession that cast a shadow over the markets.

Downturns provide opportunities for investors. They can take advantage of them to buy quality assets at attractive prices or to realize profits if they already own assets that have increased in value before the downturn. It is also important to re-evaluate investment portfolios and adjust them to fit the new market conditions.

To effectively deal with market downturns, it is advisable to focus on long-term investing to ride out short-term volatility, diversify the portfolio to reduce risk and increase stability, and seize opportunities that may arise during these periods. Staying informed about market conditions and adapting strategies is crucial to maximizing benefits and avoiding significant losses.