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Bull Markets, Pullbacks And Corrections

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After a stellar run-up this year, it looks like we are finally getting the long-awaited pullback. And I, for one, couldn’t be happier. Why? Because the ‘fear’ of a pullback was keeping plenty of investors on the sidelines. And the sooner we can get this over with, the sooner we can get back to the bull market rally. What’s important to know is that pullbacks and corrections are common. Every bull market has them. In fact, stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.) We actually saw one earlier this year in late February/early March when the Dow pulled back by -4.57%, and the S&P pulled back by -5.75%. Stocks usually correct -10% on average about once a year. (A decline of -10% to -19.99% is called a correction.) That’s what the Nasdaq did back then with a correction of -12.04%. But these are the pauses that refresh before the next leg up. And from those March lows, the Dow then surged by more than 16%, the S&P by 22%, and the Nasdaq by 28%. Now the markets are at it again. From the recent highs, the Dow has pulled back by -5.66%, the S&P by -5.28%, and the Nasdaq by -6.40%. After shaking the tree, it will be exciting to see how high the market can go this time. While pullbacks and corrections are never fun when they’re happening, if you know these are commonplace moves, you can instead look at them as opportunities to buy rather than places to sell. ------------------------------------------------------------------------------------------------------ Alert: Buy These Ultimate Four Stocks Now There's still time to get in early. These aren't just 4 promising stocks. They were handpicked from hundreds of strong companies by Zacks' experts because they present the greatest upside for Q4: Stock #1: It’s profiting from the mass migration from wired to wireless speakers. A recent monster earnings beat (5th straight), plus a patent win vs. a tech colossus could send its price skyward. Stock #2: The worst semiconductor shortage in many years has created a perfect opportunity. Time to get aboard this supplier of chipmaking equipment to the world’s largest chip manufacturers! Stock #3: While energy prices are at the highest levels in 3 years, the price of this drastically undervalued stock remains well below pre-pandemic levels. That should change very soon. Stock #4: This small-cap tech company just partnered with a giant. Estimates are moving higher each quarter. Sales growth soared 100% . This could lead to dramatic EPS improvement and a booming stock price. Deadline to download Zacks’ just-released Ultimate Four Special Report is Sunday, October 3rd. See Stocks Now >>........

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