The struggles continues.<\/p>\n
The S&P 500 is dropped 10% since its peak on February 19. It\u2019s now at its lowest level since November.<\/p>\n
The tech-heavy Nasdaq is down 15% (correction territory)\u2026<\/p>\n
And the Volatility Index (VIX), colloquially known as the \u201cfear gauge,\u201d is on the\u00a0rise.<\/p>\n
In short, 2025 has started with a serious case of market whiplash\u2026 exactly what I warned my Jolt<\/em> readers\u00a0about<\/a>.<\/p>\n If you\u2019re feeling anxious, this essay\u2019s for\u00a0you.<\/p>\n Any smart investor should be asking themselves this question\u00a0today.<\/p>\n After all\u2026 the market had been going straight up, leaving many investors behind.<\/p>\n We\u2019ve all been there. Wanting to own certain stocks but refusing to \u201cchase\u201d them as their prices climbed higher and higher. \u201cI\u2019ll buy the next dip,\u201d we tell ourselves.<\/p>\n Well, the dip\u2019s here. But it\u2019s never quite how you picture it,\u00a0right?<\/p>\n Because a dip isn\u2019t just a number. It comes with a flood of emotions like fear and paranoia. These emotions helped our cavemen ancestors survive. But in modern-day investing, they\u2019ll cloud your decision making if you don\u2019t understand and control\u00a0them.<\/p>\n To achieve that mastery over your own emotions, there\u2019s no substitute for experience.<\/p>\n If you\u2019ve been a RiskHedge<\/em><\/a> <\/em>reader for that long, you\u2019ll recall it\u00a0well.<\/p>\n COVID and lockdowns were wrecking the stock\u00a0market.<\/p>\n I urged subscribers to buy stocks in March 2020, right when fear was at its peak during the COVID\u00a0crash.<\/p>\n I sent out back-to-back alerts on March 12 and 13\u2026 and put things into perspective in my Disruption Investor<\/em><\/a> advisory:<\/p>\n What you do now will define the next 5\u201310 years of your investing life. Right now, it\u2019s extremely important to understand where we are\u2026 and how we\u2019ll set ourselves up for maximum profits in the months\u00a0ahead.I\u2019ll be frank\u2026 I don\u2019t know if we\u2019ve seen the bottom in stocks\u00a0yet.But here\u2019s the important thing: I believe markets are closer to bottoming than most people\u00a0think.My research suggests we\u2019re closer to the bottom than the top. And if stocks haven\u2019t hit the bottom yet, they\u2019re at least in the vicinity. And now\u2019s the time to prepare for what\u2019s\u00a0next.<\/p>\n Those who followed my guidance came out on top as markets staged a historic recovery.<\/p>\n I made similar calls during the brutal 2022 bear market, when inflation fears and rate hikes were battering stocks.<\/p>\n You may remember we also published The Crisis Report in 2022\u2026 in which my colleague Chris Wood<\/a> recommended 10 world-class, dominant disruptor stocks like Broadcom (AVGO) and Alphabet (GOOG) that were trading at crisis prices. As he said, it was a chance to \u201cbuy Ferrari assets at Honda Civic\u00a0prices.\u201d<\/p>\n Last we checked, the average<\/em> recommendation in that report was up\u00a050%.<\/p>\n I realize today\u2019s market is nowhere near as bad as 2020 and 2022. But I can see similar emotions starting to creep\u00a0in.<\/p>\n Remember: We\u2019ve been through much worse. And we came out wealthier on the other side by controlling our emotions<\/em>.<\/strong><\/p>\n Plus, if you\u2019ve been following along, you saw this market weakness\u00a0coming.<\/p>\n As I mentioned in my Jolt <\/em>newsletter in early January<\/a>, \u201cI\u2019m ready for a pullback, and you should be\u00a0too.\u201d<\/p>\n Now, it\u2019s time to execute the game\u00a0plan.<\/p>\n But don\u2019t just take my word for\u00a0it\u2026<\/p>\n I recently shared why I believe Peter Lynch is the best investor not named Warren\u00a0Buffett.<\/p>\n During his 13 years running the famed Magellan Fund, he generated average annual returns of 29.2%. That turns $10,000 into $279,520.<\/p>\n In his famous 1994 lecture at the National Press Club, Lynch\u00a0said:<\/p>\n History teaches you the market goes down. It goes down a lot. The math is simple. There have been 93 years this century. The market has had 50 declines of 10% or more. With 50 declines in 93 years, the market falls at least 10% about once every two\u00a0years.Of those 50 declines, 15 have been 25% or more. We\u2019ve had 15 declines of at least 25% in 93 years, so every six years, the market has a 25%\u00a0decline.<\/p>\n Of course, no one knows exactly<\/em> when the market will turn lower. You just need to know that it\u00a0will.<\/p>\n Lynch again:<\/p>\n It\u2019s good when the market goes down.<\/strong> If you like a stock at $14 and it goes to $6, that\u2019s great\u2026 You hope for $22; $14 to $22 is terrific, $6 to $22 is exceptional, so you take advantage of these declines.<\/p>\n $14 to $22 is a 57%\u00a0gain.<\/p>\n $6 to $22 is a 266%\u00a0gain.<\/p>\n First, resist the emotional urge to sell great stocks during market weakness.<\/p>\n But most importantly, consider this volatility as a gift\u200a\u2014\u200aan opportunity to accumulate positions in extraordinary companies at bargain\u00a0prices.<\/strong><\/p>\n For more insights and analysis, <\/strong>subscribe to my investing letter The\u00a0Jolt\u26a1<\/em><\/strong><\/a>.<\/em><\/strong><\/p>\n I publish fresh research every Monday &\u00a0Friday.<\/p>\n Click here to subscribe<\/a>.<\/p>\n \u2014 Stephen McBride, Chief Analyst at <\/em>RiskHedge<\/em><\/a><\/p>\n Is this correction a buying opportunity?<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" The S&P 500 is down 10%. Nasdaq plunged\u00a015%. The struggles continues. The S&P 500 is dropped 10% since its peak on February 19. It\u2019s now at its lowest level since November. The tech-heavy Nasdaq is down 15% (correction territory)\u2026 And the Volatility Index (VIX), colloquially known as the \u201cfear gauge,\u201d is on the\u00a0rise. In short, […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-51425","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/51425"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51425"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/51425\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\u201cIs this correction a buying opportunity?\u201d<\/h3>\n
Do you remember what happened almost exactly five years\u00a0ago?<\/strong><\/h3>\n
Here\u2019s what the second-best investor in history says about times like\u00a0these\u2026<\/strong><\/h3>\n
Here\u2019s what to\u00a0do\u2026<\/strong><\/h3>\n