S&P 500 and Nasdaq in correction territory, historical trends suggest market is likely to recover.

From Nasdaq: 2025-03-18 05:15:00

The S&P 500 experienced a rapid sell-off, finishing 10.1% below its all-time high, entering correction territory. The Nasdaq Composite had been in correction for several days. Historically, after corrections, the market is more likely to recover than enter a bear market. Only 39.3% of corrections between 1929 and 2024 deepened into bear markets. Bear markets have become rarer since 2010, with only two out of ten corrections turning into bear markets. The S&P 500 has seen a total return of 540% over the last 15 years. Peter Lynch advises embracing volatility in the market.

In times of market volatility, it’s crucial to review your investments and understand why you own each stock in your portfolio. The Vanguard Growth ETF, for instance, has a high concentration in just 10 companies. Investing during market corrections can produce significant long-term gains. Lynch emphasizes the importance of owning stocks if you can withstand volatility. Stock Advisor’s analyst team has revealed the 10 best stocks to buy right now. Stock Advisor has outperformed the S&P 500 with a total average return of 830%.



Read more at Nasdaq: The S&P 500 Joined the Nasdaq in Correction Territory Last Week. Here’s What Could Happen Next.