The stock market plunged in its last trading session, with the Dow losing 3%, the S&P 500 declining 4%, while the tech-heavy Nasdaq Composite retreating more than 5%. This marked a sharp reversal from the market’s gains on Wednesday, which was one of the best sessions this year as Fed chair Jerome Powell declared that a 75-basis point rate hike was off the table as of now.
However, the market’s volatility, which has led to several fundamentally sound stocks declining in price, provides the opportunity for investors to buy them for future gains. Putting money in stocks that are down, in contrast to selling them, might mean setting up for their rebound gains later. Fundstrat’s Tom Lee asserts that despite bearish market sentiments, investors should buy stocks.
