If you are an investor, the recent news headlines may sound alarming. Two of the major US stock indices, the NASDAQ Composite Index and the S&P 500 Index, have entered a correction, defined as a 10% drop from their recent high. News outlets are also sounding the alarm over inflation and a potential US recession. But what does all the above mean to you as an investor? Should you sell everything? Or could this be an opportunity to scoop up stocks on the cheap? Your reaction will depend on how you view the stock market.

A place to grow your capital

The market is broadly split into two groups of people – traders and investors. Traders are keen observers of share price movements. Their job is to dart in and out of the stock market, using their nimbleness to buy and sell stocks to net them a profit. Traders generally do not pay attention to the fundamentals of the stocks they purchase...