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Don’t dwell on a possible pullback
NvidiaNvidia(US:NVDA) MoneySense·2025-11-25 03:51

Market Overview - Current market conditions are being compared to the 1920s before the crash, raising fears of a selloff, particularly in tech stocks like Nvidia and Palantir Technologies, despite their strong fundamentals [1] - The Nasdaq experienced one of its worst weeks this year, influenced by bearish sentiments from notable investors [1] Historical Context - The Dow Jones has seen significant growth, from crossing the 1,000-point mark in 1972 to nearly 48,000 points today, indicating a long-term upward trend despite short-term corrections [2] - Market corrections of 5% to 7% are common, with larger corrections of 20% or more occurring once or twice every three to five years [2] Recent Market Movements - A notable market selloff occurred in April due to political announcements, resulting in a nearly 20% decline, but markets have since rebounded [3] - The S&P 500 has increased over 70% in the past three years, with some investors achieving average annual returns of 20% [4] Investment Strategy - Investors are encouraged to remain invested during market fluctuations, as historical patterns show that markets will recover and reach new highs [5][6] - Research indicates that missing the best days in the market can significantly reduce returns, emphasizing the importance of staying invested [7] Asset Allocation - For growth-oriented investors, equities remain a strong investment choice due to low interest rates [9] - A diversified portfolio is recommended, focusing on profitable companies with solid growth potential, while avoiding trends or over-concentration in specific sectors [10]