First,
the majority of market corrections are between 10 per cent to 15 per cent, so this strategy, relative to owning ABC outright, can protect against such a drop.
Not exact matches
As I've noted before, since the start
of 2013 — when the «fiscal cliff» calamity was averted at the very last minute with a deal struck between Vice President Joe Biden and Senate
Majority Leader Mitch McConnell (R - KY)-- investors have been impervious to the sorts
of anxiety attacks that caused significant
corrections during the first four years
of the bull
market.
While traditional long - term «buy and hold» investing enables investors to firmly capture solid gains in uptrending
markets, the problem is they frequently give back a substantial, or even
majority,
of their gains when the inevitable
corrections come.
At this time last week, the Bitcoin price was neck - deep in the most precipitous
market correction that the
majority of cryptocurrency investors had ever experienced.
The funny / weird thing is that even though the
majority of stocks are in
correction territory at best and in bear
market territory at worst, the S&P 500 itself is still 40 or so points from its all - time highs.
On October 17, the vast
majority of cryptocurrencies in the
market including Bitcoin and Ethereum have recorded slight
corrections in price, as the price
of Bitcoin fell below $ 5,600 and Ethereum price dropped to $ 320.
In fact, a
majority of participants believe the country is headed for another
market correction.