18 Oct I’m waiting for a stock market correction. What to do?

Q. I’m 25 and I’ve saved about $15,000 in IRAs and I also have a 401(k). Most of the money is in index funds and probably not as diverse as it should be. With the stock market so high, though, I’m worried about a really big correction. Should I go more conservative for the time being and then buy in again after a drop?
— Investor

A. You’re right to consider diversity.

And yes, the stock market is up.

But no, you should not go more conservative for the time being, said Leo Chubinishvili, a certified financial planner and wealth advisor with Access Wealth in East Hanover.

“Market timing requires being right twice: calling the top, then calling the bottom, which is very difficult to do,” he said. “The market being at an all-time high is not a signal.”

Since 1950, the S&P 500 has set new all-time highs roughly one in 15 trading days, he said, noting a J.P. Morgan study of the S&P 500 from 2005 to 2024 found that annualized return fully invested was 10.4%.

Missing just the 10 best days cut that return to 6.1%, he said, and missing the best 60 days changed that return to -3.7%, below the original investment.

Additionally, Chubinishvili said, seven of the market’s 10 best days occurred within two weeks of the 10 worst days.

At 25, your time horizon works in your favor, he said.

“A correction while you are still accumulating is a discount, not a loss,” he said. “You want cheap share prices now so each contribution buys more, and it compounds over many years.”

For broader diversification, you could add a broad U.S. total market fund along with international and emerging markets. Concentration in a handful of U.S. mega-cap stocks could be a risk, he said, adding that the S&P 500’s top 10 holdings make up roughly 35 to 40% of the index.

He said you should consider seeking out a financial planner to help you build an investment portfolio that makes sense for you. Getting educated early will surely help you make decisions as you get older and earn more money.

Email your questions to .

This story was originally published in October 2026. 

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.