Part 5/8:
Recent data from JP Morgan indicates a historical shift in investor behavior during market sell-offs. Retail investors have become increasingly willing to purchase stocks despite substantial market declines. For example, the Nasdaq Composite recently fell into bear market territory, with a significant drop recorded in early April 2023. Despite the turbulence, history suggests that tech stocks often rebound after such market downturns, with the Nasdaq historically showing resilience within weeks following entry into bear markets.
Investor strategy appears to have evolved, with many now adopting a buy-the-dip mentality. However, seasoned investors urge caution, advising against making trading decisions based solely on singular analyses.