Should you pray for a bear market? April 6, 2015 Archives | Unsubscribe 3 Reasons Why You Should Welcome a Stock Market Correction Should you pray for a bear market? Taking your medicine Plus: The animal spirits get a little more confusing... Greg Guenthner coming to you from Baltimore, MD... Remember Sanford and Son? Fred Sanford would always clutch his chest whenever he got anxious, saying "This is the big one." Of course it never happened. And so many market watchers are like Fred Sanford these days. Whenever the market has a down day they shout "This is the big one" because they think it's all just one pin prick away from going splat. And with the worst jobs report since December 2013 dumped on the market over the long weekend, plenty of investors are once again worrying the big one's right around the corner. New (old) questions are emerging. Will poor manufacturing data drag the US economy into recession? Will the strong dollar sink stocks? I don't think we're in for "the big one" just yet. But I do see some signs pointing toward potential weakness in stocks in the near future. And today I want to show you three reasons why a correction -- not an outright crash -- wouldn't be so horrible after all. Now when I say "correction," I mean about a 10%-20% decline in the major averages. That's not an outright crash, which is, well, a helluva lot worse. So even if your portfolio isn't at risk of a massive coronary, you need to keep a close eye on its heart rate. Does that mean we abandon our bullish outlook for certain stock sectors? No. But it means we have to prepare ourselves for some unexpected stress. We may have to sell a position earlier than we thought and sit on some additional cash, for example. Not the end of the world... Listen, corrections and bears markets are necessary. If it was sunny every day we'd never got any rain. We'd end up living in the Sahara eventually. Rain-- like corrections-- is necessary for future growth, even if it sometimes ruins our beach vacation. So don't go nuts if we see a correction. It can be healthy. So here are three reasons you should welcome a correction--whenever the hell one decides to finally show up... 1. A correction is good news for patient investors and long-term traders Ever put a great stock on your watch list only to see it jet higher? When I flip through my old notes I inevitably come across a stock I wanted to scoop up on the dips -- except there were no dips to buy. But during a correction most stocks--even the strongest names--will drop. That gives you the perfect opportunity to buy the companies you missed out on over the past few years. Who wouldn't want a second chance at a good thing? 2. People might actually watch CNBC again CNBC is caught in a ratings death spiral. How bad has it gotten at CNBC? In 2014, the network endured its worst year for its target demographic since 1992. And according to Value Walk, CNBC is experiencing its lowest total number of viewers since 1994. Cripes... But a good ol' fashioned correction might help drag the premier financial news network out of its slump. They could run their infamous "Markets in Turmoil" graphic 24/7! Everyone worried about their portfolios would tune in... Wait -- I said I'd give you three positive consequences of a correction. I'm not so sure getting more folks to watch CNBC is a good thing. Lemme get back to you on that. Anyway... 3. Everyone will shut up--finally And that is a good thing. You won't have to listen to the experts talking about a correction anymore. Everywhere you turn you see reports about how stocks are too expensive. Then there are the talks about bubbles. Every strong sector is a bubble these days, according to some people, from biotechs to technology IPOs to fast food restaurants. But you know what will slam the lid on all this talk? A correction. You might have to hear the experts gloat about how they were right. But that's OK. They'll be too busy beating their chests to notice the opportunities we'll see. While they're congratulating themselves we'll find the profitable stock market trends that'll restore your portfolio to full health. There you have it, three reasons why a correction wouldn't be the worst thing in the world. And don't worry. When I see "the big one" coming I'll do my best Fred Sanford impression for you. But it's not now... You Will Never Look at the $100 Bill the Same Way Again We all know Ben Franklin was a statesman, inventor, diplomat, and one of the most important American Founding Fathers. But very few people know the incredible story of what happened 10 months BEFORE his death. Click here to see the details and find out how this could literally change your life. Rude Numbers When to Buy... When to Sell $50.25 buys a barrel of crude today. Oil is sneaking higher this morning. It's up more than 2.25% in early trading... $1,216 is where you'll find gold futures today. The shiny yellow metal is making another run. It's up close to $16 so far this morning... $17.09 is where you'll find silver futures. The poor man's precious metal is lapping gold today. It's up more than 2.3%... 126,000 jobs were added to the U.S. economy in March. That's the lowest number since December 2013... 2,044 marks the spot for S&P futures early this morning. Stocks are looking to open significantly lower to begin the trading week... Rude Trends When to Buy... When to Sell "Uh, a ram ... is a MALE SHEEP," a reader says as we finally close the lid on our Chinese Astrology discussion. "A male goat is a 'billy'." Rams, goats, billys, bulls... whatever. I think this is the most sidetracked we've ever gotten here in the bottom of the ol' mailbag. Let's not let these spirit animals derail our trading goals. I'm tabling all of this animal talk. From now on, it's just bulls and bears (the metaphorical kind, of course). [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] Ignore At Your Own Peril Today's Must Read Links CIA Insider: "I fear the dollar may be replaced as early as Spring 2015" Quit Your Job and Live a 5-Star Lifestyle -- for FREE Breaking: There Should Be a Massive Milk Recall BE SURE TO ADD rude@agorafinancial.com to your address book. Additional Articles & Commentary: Join the conversation! Follow us on social media: The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. 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