Hey, Ross here:
Stocks just saw their fourth straight week of declines.
The situation in Iran seems to be escalating instead of winding down…
Meaning we could see more pain before things recover.
And sure, everywhere you look there’s a lot of doom and gloom about the stock market.
But today, let’s put things into a bit of perspective – starting with the following chart.
Chart of the Day
The S&P 500 is down roughly 7% from its recent high.
As far as pullbacks go, that’s pretty steep. 10% is already considered a correction (the Nasdaq is nearly there).
But if you look at the data from the past 46 years…
You can see that the current pullback – painful though it is – is NOT unusual.
In fact, in the average year, the market sees an average correction of about 14%.
Almost half of those years see a correction of at least 10%.
And out of those years with a correction, 60% of them sees the market ending the year higher (over 17% on average in those years).
As for how often a 5% pullback turns into a correction or a full-blown bear market, well – there’s data on that too.
Just look at 2025.
We entered a (brief) bear market, but the S&P 500 was up over 15% for the year.
Am I saying that is certain to be the case this year? Of course not.
We’ll probably see more pain before it gets better.
But when we get markets as turbulent as what we’re seeing today – it’s worth zooming out to gain a better perspective.
As for the best move right now?
I share my thoughts below.
Insight of the Day
Find a way to make money even when stocks go down
If you’ve followed me for any length of time, then you know I’m generally bullish (the most rational stance to take, given stocks tend to go up over the longer term).
Even when markets aren’t doing so hot, there are always areas of strength you can be bullish on.
That’s true even now, and I’m still focusing on those areas.
But given the current situation…
Just like last year’s painful tariff selloff, we want to find a way to make money even if stocks go down.
After all, as traders, we need to stay flexible.
I’ll share something more on this tomorrow morning.
So make sure you keep an eye on your inbox for that.
In the meantime, if you want to know more about those areas of strength I’m still focusing on…
Then click here to watch this video now.
Customer Story of the Day
“Ross is a minefield of knowledge…
Really enjoying his live sessions – a lot of information to process being new enough to the game.
But I’m enjoying the teaching style as he break things down well and says it how it is – no fluff no messing about.
This man knows his onions recommend 10/10”
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
