Global Opportunities Beyond the Radar

The Next Correction: Should You Invest?

Stocks price in downtrend mode indicates global economy enter recession

Stocks price in downtrend mode indicates global economy enter recession

The savviest investors know this: That a market correction — especially a big correction — can in time lead to the biggest gains.

The 1929 market crash has some similarities to the situation we now find ourselves in. It too followed roaring times after a global pandemic. A period of money-printing and low interest rates.

From 1929 to 1932, the American stock market lost around 80% of its value.


The 1929 stock market crash heralded The Great Depression. Source: BBC


But it did flex back.

An investor who invested a lump sum in the average stock at the market’s 1929 high would have been back to a break-even by late 1936, less than four and a half years after the mid-1932 market low.’

—New York Times analysis, 2009


So to the question: When the next correction comes, what should you invest in?


My colleague John Ling tells me some of you have been asking exactly this.

We have a recent correction to draw from. The March 2020 coronavirus lockdown crash, where markets fell up to 35%.

During the 2020 pandemic, the biggest loser was initially oil — and oil-related stocks. The demand disruption coincided with a price war. Real estate, hospitality, travel, and entertainment were also smashed.

Yet, areas such as food, healthcare, and software — especially ‘work from home’ software — bucked the trend and rose.

Following March 2020, I was looking at a series of analyses:

Here’s why these critical facts could help you make a more profitable decision when the next correction hits…

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