Unless you’re a short-seller, 2022 probably hasn’t been a banner year. Since hitting their respective all-time highs between November 2021 and the first week of January, all three major U.S. stock indexes have plunged into a bear market. None has fared worse than the tech-centric Nasdaq Composite (^IXIC -0.52%), which has endured a peak-to-trough drop of as much as 38%.
While it’s perfectly normal for investors to have their resolve tested during bear markets, it’s important to recognize that these sizable declines represent unique opportunities for patient investors to buy into incredible businesses at a discount. That’s because every double-digit drop in the major U.S. stock indexes, including the Nasdaq Composite, has eventually been cleared away by a bull market.
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The 2022 bear market is an especially good time to scoop up growth stocks at favorable prices. What follows…
