{"id":9863,"date":"2021-09-22T21:17:04","date_gmt":"2021-09-22T21:17:04","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9863"},"modified":"2022-02-26T13:05:37","modified_gmt":"2022-02-26T13:05:37","slug":"a-correction-is-coming-but-trying-to-time-the-market-is-risky","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/a-correction-is-coming-but-trying-to-time-the-market-is-risky\/","title":{"rendered":"A Correction is Coming\u2014But Trying to Time the Market is Risky"},"content":{"rendered":"\n<p><em>Maya G. from Bend, OR\nasks: <\/em>Good morning, Mitch, I\u2019ve been hearing talk of a correction quite a\nbit in the financial news. Many analysts think a Delta-induced slowdown will\nhold back earnings and lead to declines. What\u2019s your take?<\/p>\n\n\n\n<p><strong>Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n<p>Thanks for writing, Maya. I understand what you\u2019re saying \u2013\nthere have been quite a few calls for stock market pullbacks in the final\nmonths of the year, with many analysts writing columns and going on TV saying\nwe\u2019re \u201cdue\u201d for a correction. <\/p>\n\n\n\n<p>I technically belong in that group too, as I\u2019ve written a\nfew columns reminding readers that it\u2019s been several months since we\u2019ve seen a\npullback of -10% or more. Unlike many of the analysts you might see on the\nfinancial news, my main goal is almost always to remind readers that corrections\nare normal, common, <em>but also\nunpredictable<\/em>. Saying we\u2019re \u201cdue\u201d for a correction is a bit misguided, I\nthink since corrections don\u2019t follow timelines or calendars.<sup>1<\/sup><\/p>\n\n\n\n<p>_____________________________________________________________________________<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2021_09_23&amp;content=volatility_guide\">Tips On How to Manage Market Volatility!<\/a><\/strong><\/p>\n\n\n\n<p>When\ninvestors are faced with volatility, they tend to chase negative headlines.\nQuestions may arise like: <em>Could volatility actually be an opportunity?\nWhat\u2019s the next step? <\/em><em><\/em><\/p>\n\n\n\n<p>The\nreal challenge is not in finding a way to eliminate volatility\u2014it is developing\na mental approach to dealing with it. Our guide, \u201cHelping You Manage Market\nVolatility,\u201d will provide you with insights and tips to do just that. Get\nanswers to questions like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em>Market downturns can and will occur, but what should you do?<\/em><\/li><li><em>How can diversification help you manage volatility without compromising your returns?<\/em><\/li><li><em>When volatility is too much for you to handle, how can a money manager help?<\/em><\/li><li><em>Can volatility be an opportunity?<\/em><\/li><\/ul>\n\n\n\n<p>If you have $500,000 or more to invest and want to get answers to the questions above, click on the link below to download this guide today!<br> \u00a0<br><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2021_09_23&amp;content=volatility_guide\">Download Zacks Volatility Guide, \u201cHelping You Manage Market Volatility.\u201d<\/a><sup><a href=\"https:\/\/go.steadyinvestor.com\/arrow-volatility-guide?source=website&amp;medium=blog&amp;term=mitchsmailbox_blog_2021_09_23&amp;content=volatility_guide\">2<\/a><\/sup><\/strong><\/p>\n\n\n\n<p>_____________________________________________________________________________<\/p>\n\n\n\n<p>That all being said, the Delta variant concerns you\nreferenced are indeed showing up in some earnings\u2019 calls here and there. We\u2019ve\nnoted the major airlines starting to report cancellations and warnings of Q3\nnegative earnings surprises, and we have also seen some concerning language in\nearnings revisions for hospitality and household goods companies. There could\nbe an impact on Q3 earnings results, but I\u2019m not convinced it will affect every\nsector nor that it will last very long. <\/p>\n\n\n\n<p>To be fair, however, there are currently signs of downside\npressure in pockets of the equity markets. As I write my response to your email,\nequities are selling off and have exhibited downside volatility right from the\nopen. It is also true that a wide majority of Russell 2000 stocks have fallen\ninto correction territory (-10%) over the last few weeks, with many S&amp;P 500\nstocks also trading off 52-week highs. It may be that we\u2019re already in the\nearly stages of a stock market correction.<\/p>\n\n\n\n<p>I think the bottom line is this \u2013 if you are an equity\ninvestor, you should always expect volatility and the possibility of a stock\nmarket correction. It comes with the territory. The wrong move, in my view, is\ntrying to figure out when and for how long the stock market is going to dip. No\ninvestor can get this type of market timing right over time, and attempting to move\nin and out of stocks based on conjecture is a recipe for adversely impacting\nreturns, in my view. &nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>So,\ninstead of trying to eliminate volatility, let us help you steer through it.\nOur guide, <em>Helping You Manage Market Volatility<sup>3<\/sup>,<\/em> will\nprovide you with insights and tips to do just that. Get answers to questions\nlike:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em>Market downturns can and will occur, but what should you do?<\/em><\/li><li><em>How can diversification help you manage volatility without compromising your returns?<\/em><\/li><li><em>When volatility is too much for you to handle, how can a money manager help?<\/em><\/li><li><em>Can volatility actually be an opportunity?<\/em><\/li><\/ul>\n\n\n\n<p>If you\nhave $500,000 or more to invest and want to get answers to the questions above,\nclick on the link below to download this guide today!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mitch discusses the predictions that we&#8217;re &#8220;due&#8221; for a correction, and how investors should prepare for volatility<\/p>\n","protected":false},"author":3,"featured_media":7436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-9863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9863"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9863\/revisions"}],"predecessor-version":[{"id":10304,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9863\/revisions\/10304"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}