3 Stocks I'm Buying During a Tech Stock Correction

A strange thing happens when the market takes a downward turn. Many amateur investors take their ball and go home. According to a survey by Bankrate.com, only 18% of adults in the U.S. will invest more in 2022 than they did in 2021.

But what does this mean? It means that the vast majority of individual investors bought more when the market was high and are now either selling or not buying when it is low. Higher dividend yield opportunities are also lost. Meanwhile, hedge fund managers wait to pounce on bargain prices. Insider buying is also up, showing that many company executives believe their stocks are undervalued.

Bankrate.com did have some encouraging news. Overall, younger investors like those in Gen-Z were planning to add to their investments in 2022. Since they have a long timeline, adding incrementally during a down market is historically a winning strategy. It's nearly impossible to time the market bottom, and the market could go lower. This is why an approach like dollar-cost averaging, or incremental purchasing, is so important. So is having a diversified portfolio to mitigate risk.

Source Fool.com