Warren Buffett's rule for market downturns, amid the Nasdaq correction
The Nasdaq Composite entered correction territory after falling more than 10% from its October peak, while the S&P 500 and the Dow Jones were down around 6% and 5%, respectively, and the Fear and Greed index moved into "extreme fear". Against that backdrop, the piece recalls the rule Warren Buffett set out in 2008: "be fearful when others are greedy, and be greedy when others are fearful." The article argues the market has always recovered and that staying invested over the long term has historically worked.
In 45 seconds
- The Nasdaq Composite entered correction territory after falling more than 10% from its October peak; the S&P 500 and the Dow Jones were down about 6% and 5%.
- The Fear and Greed index quickly dropped into the "extreme fear" category during the week.
- Buffett wrote in 2008: "be fearful when others are greedy, and be greedy when others are fearful."
Read the full story at The Motley Fool
IASummary generated by artificial intelligence from a story by The Motley Fool. It may contain errors: the original source prevails.
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