Should you be happy when the market drops?

Sometimes, yes! It’s counter-intuitive but if you are adding money to your account, for example through regular contributions via your paycheck, you are purchasing more shares for the same amount of dollars when the market is down, which magnifies your wealth when the market recovers. Once you are near or in retirement and are removing money (selling shares) rather than adding money (buying shares), market volatility doesn’t provide that benefit, which is why that life stage generally calls for less stocks and more bonds. See the “Life stage investing” FAQ for more information.