Stock Market Corrections Create Bargains for Savvy Investors
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A stock market correction is a 10-20% drop, anything above 20% is a crash. The London Stock Exchange has experienced many over time.
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Corrections can create bargains for long-term investors who stay calm and buy quality stocks when others panic sell.
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It's wise to keep cash in an ISA to deploy in a correction rather than be "all-in" invested.
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Good stocks to target are out-of-favor sectors like housebuilders and miners, and investment trusts trading at big discounts.
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Historic market crashes show that the largest discounts and best bargains emerge when pessimism is peaking during a correction.