2 Simple Stocks to Buy With $400 Right Now
Investing in stocks can feel like a roller coaster ride -- thrilling highs, heart-stopping drops, and everything in between. Take 2022, for example. Major market indices like the broad-based S 500 and the tech-heavy Nasdaq Composite reached all-time highs in 2021. Fueled by inflation trends and a widespread investor retreat from risky ideas, the next year unveiled a brutal bear market with the worst full-year market returns since the subprime mortgage meltdown of 2008.
But the market storms are almost always followed by sunny skies and solid gains in the next year. There were 11 bear markets with full-year S 500 drops of at least 20% in the last 60 years. 7 of them were followed by double-digit gains in the next year, including 5 jumps of at least 20%.
It's impossible to say how far the market metrics will fall in a correction or bear market. Still, history shows us that every significant stock market crash will eventually turn into a full-fledged bull market rally. That's why Wall Street's double-digit percentage drops actually open up a fantastic buying window for opportunistic investors.
Source Fool.com