How does an investor in common stocks reconcile the large variability in stock returns, and the big

Question:

How does an investor in common reconcile the large variability in stock returns, and the big drops that have occurred, with taking a prudent position in owning a of financial assets?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...