Market Correction due to high valuations

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Do you know where institutional investors put their money when they see a big correction coming? So we can protect ourselves as well. I’ve read quite a bit about end of 2025 or beginning of 2026 seeing a large correction in the market.

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Asked on July 9, 2025 5:14 am
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Hey there. In general timing the market is impossible. Institutional investors often have high levels of pressure to perform in practically any environment. This leads to a bit more active management and putting capital in different places.

The only difficulty is the vast majority of these active managers underperform benchmark indexes.

As individual investors with longer time horizons, we have the advantage of simply being able to do nothing. When the markets are at all time highs, we buy. When the markets are at 52 week lows, we buy. If we establish a set routine, buy at regular intervals, we will still face and go through the corrections, but over the long-term the markets will recover and our wealth will grow.

Media is designed to drive clicks. Bear markets/crashes etc create fear, and fear creates clicks. Could the markets correct in 2026? Sure they could. But there was also a lot of fears that the market would crash due to the tariffs. The S&P 500 is currently up 7% on the year.

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Posted by Dan Kent
Answered on July 9, 2025 8:36 am
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Excellent answer !🤗
(Rick Reeves at July 11, 2025 2:18 am)