Broker Check
The Market Finds Some Stability

The Market Finds Some Stability

February 08, 2022
Share |

There is a good chance we saw the bottom of this current stock market correction (a drop of 10-20%) two weeks ago on January 24th, when the S&P fell to 4,222 and the Nasdaq fell to 13,094. Market drops like these occur quickly and with a lot of volatility that can spook even the most seasoned investors. They are a healthy part of the stock market cycle when investors with weak convictions (of stocks going higher) sell and investors with strong convictions buy. Now we’re seeing the volatility start to settle and the market moving off its lows.

This is a close-up look at what we’ve seen in the markets these past few weeks, but it’s important to step back and look at the big picture. The stock market has been in a secular bull market (a long-term uptrend) since March of 2009. My analysis of historical stock market cycles leads me to believe that there is a high probability the market will continue in this uptrend for another 5 years or more. Short term market corrections can be emotionally intense, but I see them as opportunities to increase stock positions for the next move higher.

Want to learn more about market cycles? Click here to send me your questions or suggest a good time to connect for further discussion.

Photo by: Dusan veverkolog

.

.

.

.

.