Down 25%, Is It Safe to Invest in the Nasdaq Right Now?

The Nasdaq is getting crushed this year, and it's causing plenty of fear among investors. The index is moving from correction to crash territory, as it's down 25% so far this year. It's natural for confidence to get shaken by big losses, but these are actually the times when the best deals become available. Investors have to take emotion out of the equation and determine if it's time to scoop up Nasdaq stocks at a discount.

This correction has followed a classic and fairly predictable pattern. Stock markets have always followed long-term upward trends, but those paths are not smooth. They go through cycles over time as markets rise and fall due to short-term global economic conditions. Valuations rise and fall with factors such as interest rates, economic growth, and investor risk appetite. However, growing cash flows drive stock values higher over the long term.

Image source: Getty Images.

Source Fool.com