If a Stock Market Crash Is Coming, History Says Investors Who Do This Will Turn a Big Profit
The article argues that if the stock market enters a correction or crash, history favors investors who buy the dip rather than try to time the downturn. It cites a backdrop of strong 2026 gains for the S&P 500 and Nasdaq Composite, but warns that higher inflation, a potential Fed rate hike cycle, and midterm election uncertainty could trigger a correction. The piece notes that after prior tightening cycles, both major indexes often fell into correction territory within three months, but then rebounded strongly over the following year and two years. Since the Great Recession, the S&P 500 and Nasdaq have repeatedly recovered from corrections, producing average post-correction gains of 18%-23% in year one and 38%-41% over two years. Market impact: the message is broadly bullish for long-term equity investors, especially those using index funds, even if near-term volatility rises.