Stocks are now on sale. The recent so called market correction made stocks 10% cheaper from their recent highs. I have often thought it is rather ironic when stocks are overvalued people buy like crazy but as soon as the stock prices drop the same people often head for the nearest exit. The best time to buy stocks is when others are selling and the prices are cheap or at least cheaper.
So how long does a market correction last? If you look at the historical data a market correction is a 13% decline over four months and takes just four months to recover and reach prior highs. So as long is this is not the start of a bear market down over 20%, it is BUY time. Right now the market has made back about half of its recent selloff but is still down about 6% from prior highs. Buy low sell higher is always good advice.
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