Today is Wednesday. March 19th. This afternoon, for the first time since January 29th, or for the second time this year, the Federal Reserve's FOMC (Federal Open Market Committee) will release an official statement on monetary policy. Happy Fed Day to all who celebrate. The festivities begin at 14:00 ET. That's when the above-mentioned statement (eight times a year) will be released alongside the committee's quarterly (first release for 2025) economic projections. A half hour later, Fed C...

Recently, US stocks have experienced a long-awaited market correction, with the S&P 500 Index falling more than 10% from its peak, marking the first large cap pullback since 2023. Market panic is intensifying, and many investors are concerned whether this signifies a deeper market crisis or another investment opportunity to re-enter the market. According to historical data, market corrections are actually not uncommon; over the past 50 years, the S&P 500 has averaged a 10% decline every 1.84 years. For Futubull investors, the key lies in understanding the patterns of market corrections, the influencing factors, and investment strategies to maintain stable returns amid the fluctuations. Through 'US Stocks 101', we will analyze the core points of this market pullback and provide data-driven investment strategies to help find the best opportunities during market volatility.
Is a market correction a precursor to a stock market crash, or is it a healthy pullback?
A market correction refers to a decline of 10% to 20% from the recent peak. This time, the S&P 500 Index has dropped 10%, meeting the definition of a correction, but still has a distance to bear market (a market decline of over 20%). Historical data shows that since 1950, the S&P 500 has averaged a 10% pullback every 1.84 years, and after the past 15 market corrections, the average increase of the S&P 500 within 12 months was over 15%, indicating that long-term investors are more likely to profit after corrections.
This correction was primarily triggered by...