The Nasdaq Recently Hit Correction Territory. Here's What History Says Comes Next.
Corrections are a normal part of investing in stocks. But the market is still very likely to thrive over time.
Overview
Several days ago, the Nasdaq-100 index officially touched correction territory. On July 29, it closed just over 11% below its all-time high reached in early June.
For those worried about the implications of this pullback for their portfolios, it's important to remember that these kinds of drawdowns aren't unusual. The index was down more than 10% at the end of March this year. It nearly fell 20% in the first half of 2025 when the Trump administration imposed the "Liberation Day" tariffs. Another pullback occurred during the summer of 2024.
Details
Corrections are normal and healthy (even though they can feel painful). But there are things you can do to help:
Source
Originally published at www.fool.com.