As of November 21, the S&P 500 was down 5.8% from the record high set on October 29. The financial news media were full of opinions that the AI bubble had burst and that stocks were entering a new bear market. A 34% drop in Bitcoin helped fuel investor fears.
How far stocks will end up dropping, and when they will recover, are future data points. What you should understand is that, despite the “bubble is bursting” sentiment, stock market declines can always be viewed as opportunities to pick up shares of the stocks you like, while they’re “on sale.”
This post originally appeared at Investors Alley.