Yet history also shows that stock market crashes and corrections are a common occurrence and the price to be paid for taking part in one of the greatest wealth creators on the planet.
Data from market analytics company Yardeni Research shows that the S&P 500 has undergone 38 double-digit percentage moves lower since the beginning of 1950.
Following each of the previous eight bear market troughs, the S&P 500 shed at least 10% of its value on one or two occasions within 36 months.
In the four previous instances where the S&P 500’s Shiller P/E surpassed 30, dating back to 1870, the index has subsequently lost at least 20% of its value.
The point being that the likelihood of a crash or correction is growing.
The good news for long-term investors is that every single double-digit percentage decline in the stock market throughout history has proved to be a buying opportunity.
The biggest prevailing critique of Redfin is that the company has benefited from historically low mortgage rates, which are bound to head higher over time.
When a buyer or seller seeks a real estate professional, they’re often going to pay a listing fee/commission ranging between 2.5% and 3%.
Beyond just undercutting traditional real estate firms on price, Redfin is relying on its higher-margin personalized services to woo new clients.
If a big dip were to arise in the broader market, it’d be the perfect stock to scoop up.
It disappointed with a sequential quarterly decline of 24 million monthly active users in the second quarter, and was the subject of short-lived rumors that it would be acquired by PayPal.
While there’s no sugarcoating that things haven’t been perfect for Pinterest, the pessimists are equally overlooking a number of important metrics.
Despite growing its total MAUs by “only” 9% in the June-ended quarter, average revenue per user increased by 89% globally and 163% internationally from the prior-year period.
Furthermore, don’t overlook how transparent Pinterest is, relative to other social media platforms. Its entire premise is built on users sharing the things, places, and services that interest them.
In other words, it was in the right place at the right time when the pandemic struck and benefited immensely from a massive uptick in virtual visits.
Providing virtual visit channels is more convenient for patients, and can be especially helpful for physicians when attempting to keep tabs on chronic-care patients.
As Livongo expands its services beyond diabetes patients to those with hypertension and weight management control issues, its pool of potential members will skyrocket.
Investors should note, as well, that Teladoc Health’s operating results will vastly improve in 2022.