The stocks have not been well performed so far in 2025. President Donald Trump’s commercial wars create a state of great uncertainty, while many fear that the recession is coming – a thing that can send the stock market in the wrong direction. the Nasdak and S & P 500 Both were hit recently Correction area It was defined as a 10 % decrease in its latest level. What will happen next? Expecting these things is difficult, but a Bear market It is a real possibility.
And if that happens, it will create incredible opportunities for smart investors. Let’s see what history says about buying stocks during the bear markets.
The bear market is a 20 % decrease (or more) of the highest level in the index. Therefore, the correction area makes us in the middle of the road there. Although it may be difficult to remain calm when the stocks fall a lot, the historical registry shows that investing in stocks during the bear market is an excellent step. Let’s take a recent example: the contraction that occurred in 2020 due to the disorders of the epidemic. NASDAC and S&P 500 have multiplied more than weakening since they reached the bottom of the rocks in early April 2020-and this means that they have achieved an annual growth rate of more than 15 % in this period, which is much higher than the long-term historical return of the market.
The story is generally the same for most bear markets. Although it is impossible for a market time – no one knows when the stocks will come out – investing in wonderful stocks in bad times is a great way to apply one of Warren Buffett’s advice from the investment advice: be greedy when others are afraid. In other words, there is no reason for fear of contraction or market fluctuations. They are part of the process. Instead, when the bear hits, it is a great time to start shopping in wonderful stocks.
Let’s think about one company to invest in whether the shares are continuing to go down throughout the year (or even if you do not).
E -commerce giant shares Amazon(Nasdaq: amzn) It has already decreased by 13 % this year, partially attributed to market fluctuations. The stock is still an excellent choice for long -term investors. Amazon is a leading company in many industries with great growth possibilities. He is the best player in the American e -commerce market and the global cloud computing industry. These days, Amazon’s Cloud Business-Samazon Web Services (AWS)-and its ads unit is the largest growth driver on upper lines. The main Amazon measures were growing in a good clip.
Within AWS, Amazon provides a set of services associated with artificial intelligence (AI), which has increased demand in the past two years. We are still in early roles to adopt new artificial intelligence applications. Thanks to its flawless innovative capabilities and switching costs, Amazon should remain a pioneer in this place for a period of time. The company’s advertising will not become stronger as well. The Amazon’s E-Commerce on the web is one of the most visited period all over the world and benefits from the impact of the network: the more traders they have, the more consumers attract, and vice versa.
Moreover, Amazon continues to invest in other major growth methods. Amazon Pharmacy is to eat in one way or another in the market share of some of the leaders who are well -established in this field, such as Walgrens Boots Alliance. This is not a small achievement; This is partly because Amazon makes things more suitable for people – it is much easier to get drugs than delivering drugs rather than having to wait in the queue, and sometimes for a period of time, to get them. Amazon’s success in this field is also possible because of its estimated base of more than 200 million members.
This great ecosystem gives the opportunities that control the company. Therefore, to summarize Amazon, Amazon generates fixed revenues, profits and cash flows, is a leading company in mature industries for growth, and has a strong trench. If there is one blow against the stocks, its evaluation may be. The Amazon ratio is forward to the profits (P/E) is about 30, even after the decline of this year. Average P/E forward for the estimated sector of the consumer to which he belongs is 25.
While Amazon deserves the bonus, taking into account its location in this industry, the stock will become more attractive in the full bear market. Again, no one can predict the certainty if it would happen at some point this year, and even if not, Amazon Stock is buying. But if the bear market appears, Amazon will be stronger.
Before buying stocks in Amazon, think about this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Amazon was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at whenNetflixThis list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation,You will have 461,558 dollars! Or when NafidiaThis list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation,You will have 578,035 dollars!
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*The stock consultant dates back from April 5, 2025
John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Prosper Junior Btyy He has sites in Amazon. Motley Fool has positions in Amazon and recommends it. Motley deception has Disclosure.
