What do similar corrections tell us? From the desk of Chris Ciovacco:
The Friday through Tuesday morning stock market plunge has gotten the attention of investors. And the news media.
But fear and emotion don’t mix well with investing. So to understand the decline, as well as what’s next for stocks, we need to stick with the facts.
It might be helpful to better understand what happened after the plunge was over in the five similar cases. Did stocks tank or did they find their footing and produce positive returns. The data speaks for itself:
Yes, stocks can continue to fall, we could be on the verge of a multi-year decline but the probability of good things happening far outweighs the probability of bad things happening.
Hat tip seeitmarket.com and Ciovacco Capital.