How do you know when it's a good time to buy a stock?
Even buying a growth stock with strong long-term potential near the peak of a bull market run is far from a death sentence. While growth stocks tend to fall much more in price during a correction or crash, those periods can also be catalysts for growth.
Economic events that shake up the stock market often present opportunities for companies with management teams focused on long-term growth opportunities. So, even if your stock tumbles, it could come back even stronger. Uncertain economic times are great opportunities for growth stock investors.
Some investors may be scared off by a small pullback in price, thinking more losses are coming. In fact, it's much more likely to be a correction (a drop of more than 10% but less than 20%) than a market crash (a drop of more than 20%). Stock market corrections happen all the time -- on average, once every other year or so. They can be great opportunities to buy stocks while they're temporarily discounted.