🚨 Nasdaq plunges 5.5%, semiconductors suffer their worst performance since the pandemic! What do historical patterns say we should do now?
U.S. stocks were awash in red last night: the Nasdaq fell 5.52%, down 11% from its all-time high and entering correction territory; the semiconductor ETF dropped 12%; and Nvidia plunged 9%. Tech stocks lost $2.5 trillion in market value in a single day.
In the face of this sell-off, many are asking: Where’s the bottom? Is it time to buy the dip?
Let’s look at the historical patterns from 10 corrections over the past 10 years:
1️⃣ Short-term risk: In the first month after a correction, the market is likely to face further selling.
2️⃣ A mid-term opportunity: Except in 2022, the Nasdaq returned to gains within six months of every correction.
3️⃣ Average gains: In the three months after bottoming, the market rose 9.41% on average; after six months, it rose 17.03% on average.
Bottom line: U.S. stocks haven’t found a short-term floor yet, so don’t rush to go all in and catch a falling knife. But if you look six months ahead, this sell-off could be laying the groundwork for a major recovery.
Do you think that once this U.S. stock market sell-off is over, money will flow back into crypto?
$SOXLB $SOXL
U.S. stocks were awash in red last night: the Nasdaq fell 5.52%, down 11% from its all-time high and entering correction territory; the semiconductor ETF dropped 12%; and Nvidia plunged 9%. Tech stocks lost $2.5 trillion in market value in a single day.
In the face of this sell-off, many are asking: Where’s the bottom? Is it time to buy the dip?
Let’s look at the historical patterns from 10 corrections over the past 10 years:
1️⃣ Short-term risk: In the first month after a correction, the market is likely to face further selling.
2️⃣ A mid-term opportunity: Except in 2022, the Nasdaq returned to gains within six months of every correction.
3️⃣ Average gains: In the three months after bottoming, the market rose 9.41% on average; after six months, it rose 17.03% on average.
Bottom line: U.S. stocks haven’t found a short-term floor yet, so don’t rush to go all in and catch a falling knife. But if you look six months ahead, this sell-off could be laying the groundwork for a major recovery.
Do you think that once this U.S. stock market sell-off is over, money will flow back into crypto?
$SOXLB $SOXL
