Stock Market Corrections: Normal Dips that Present Buying Opportunities
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A stock market correction is when a major index like the S&P 500 drops 10-20%. Corrections are a normal part of investing.
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Corrections can create buying opportunities for long-term investors to pick up quality stocks at discounted prices.
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Corrections help keep valuations and investor enthusiasm in check. Without them, the market risks overheating.
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Corrections sometimes turn into crashes if there are serious economic events triggering the declines.
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Long-term investors should stay focused on their goals. Historically markets recover from corrections, presenting chances to buy.