The Nasdaq Just Hit Correction Territory. History Says the Stock Market Will Do This Next (Hint: It May Shock You).
View original at nasdaq.comThe Nasdaq Just Hit Correction Territory. History Says the Stock Market Will Do This Next (Hint: It May Shock You). The U.S. stock market has stumbled in recent weeks as the Trump administration imposed tariffs on goods imported from Canada, China, and Mexico, potentially starting a trade war…
What we drew from this source
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The market dislikes uncertainty
60% confidenceSince 2010, the Nasdaq has returned an average of 21% during the 12-month period following its first close in correction territory
60% confidenceThe tariffs proposed by the Trump administration would increase the average tax on U.S. imports to 13.8%, the highest level since 1939
60% confidenceTariffs probably hurt corporate earnings
60% confidenceThe Nasdaq Composite has recovered from every correction and there is no reason to believe this one will be different
60% confidenceBusinesses can either absorb the cost increases or pass them to buyers. Margins fall in the first scenario, and sales likely fall in the second scenario
60% confidenceThe Nasdaq has historically bounced back very quickly from corrections
60% confidenceThe current drawdown is a buying opportunity
60% confidenceStock Advisor service has more than quadrupled the return of S&P 500 since 2002
60% confidence
Data points we hold from this source
| Stock Advisor · return vs sp500 | 4 multiple |