If a Stock Market Crash Is Coming, History Says Investors Who Do This Will Turn a Big Profit
Buying the dip during stock market corrections has historically been a surefire way to turn a profit.
Overview
Year to date, the broad-based S&P 500 (SNPINDEX: ^GSPC) has advanced 13%, and the technology-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) has added 15%. But the stock market may lose its momentum in the months ahead if the Federal Reserve raises interest rates, and the downturn could be severe (perhaps even a market crash) because midterm elections tend to incite volatility.
On the bright side, history provides a simple blueprint for success. In the event of a stock market crash, the smartest move investors can make is to buy the dip, particularly after the S&P 500 and Nasdaq Composite have closed in correction territory. Here are the important details.
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Source
Originally published at www.fool.com.