Welcome back to Carson’s Take Five with Ryan Detrick and Sonu Varghese! This week, we break down the recent 10% stock market correction, why it’s happening, and whether investors should be worried. With markets pulling back sharply, we provide historical context, discuss the role of tariffs, and explain why volatility is normal. Plus, we check in live from Chicago’s St. Patrick’s Day celebrations—green rivers and all!
Key Takeaways:
- Market Corrections Are Normal: The S&P 500 experiences at least one 10% correction every year on average. This one just happened early in 2025.
- No Recession on the Horizon: Despite the market drop, consumer and corporate balance sheets remain strong, and economic data doesn’t signal a downturn.
- Volatility is the Price of Investing: Historically, even in strong market years, we see big down days—selling at the wrong time means missing the best days.
- Tariffs & Growth Expectations: Optimism on economic growth has cooled, and tariff uncertainty is contributing to market swings.
- History Repeats Itself: Rapid corrections like this have happened before—each time, markets rebounded strongly in the following months.
