Chris Curl,
Editor
Aug. 21, 2025
Let’s be honest… corrections never feel good in the moment. The headlines are red, portfolios dip, and suddenly, everyone becomes an armchair economist predicting doom.
But here’s the thing: not every pullback is the start of a bear market. More often than not, it’s a chance to buy quality assets at a discount.
And right now, both stocks and crypto are flashing “opportunity.”
Current Market Conditions: A Pullback, Not a Collapse
This latest dip has been pretty modest when you zoom out. The S&P 500 is off just 0.6%, while the NASDAQ slipped 1.5% over two days.
In crypto, Bitcoin’s pulled back 8.8% from $124K to around $113.5K, and Ethereum dropped 12.3% from its peak. Noticeable, yes… but nothing compared to the bruising corrections we’ve seen over the years.
History backs this up.
Since WWII, the S&P 500 has seen 48 corrections of 10% or more, and only a quarter of those morphed into full-blown bear markets. Odds are, what we’re seeing now is just another healthy reset.
Strong Fundamentals: The Wind at Investors’ Backs
The data underneath all this is rock solid.
Corporate earnings for Q2 2025 are up 11.8% year-over-year… the third straight quarter of double-digit growth. Revenues are up 6.3%, the best since 2022. And nearly 80% of companies are beating earnings estimates.
That’s not the backdrop of an economy in trouble… that’s strength.
Put simply, businesses are growing, customers are spending, and profits are flowing. That’s the kind of environment where dips tend to be short-lived.
What’s Driving the Selling (and Why It’s Temporary)
So why the weakness? A mix of temporary headwinds:
- Fed Uncertainty at Jackson Hole – Traders are twitchy about rate cuts. Odds of a September cut slipped from 95% to 83% after mixed data. But Powell is widely expected to lean dovish, which would be bullish.
- AI Skepticism – An MIT study questioning AI ROI hit stocks like Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR). But corporate AI spending hasn’t slowed one bit.
- Seasonality – August and September are historically weak months. If the market was going to wobble, this is exactly when you’d expect it.
Opportunities in Stocks
Pullbacks are when you look for quality on sale, and a few sectors stand out:
- AI Infrastructure: Nvidia, TSMC, and AMD remain linchpins of the AI buildout. The dip makes them cheaper, not weaker.
- Value Plays: Value stocks are trading at a 7% discount to fair value, while growth sits at a 16% premium. Bargains are still hiding in plain sight.
- Dividend Growers: These are steady ships—cash flow, income, and now more attractive valuations. Perfect for riding out volatility.
You can follow my tech portfolio at Digital Dispatch by clicking this link.
Crypto: A Buy-the-Dip Moment
Crypto investors know volatility is part of the package. But even here, the data is bullish:
- Bitcoin Still Strong: Despite the pullback, 92% of BTC wallets are still in profit. No panic here. Corporates like MicroStrategy and Metaplanet are still buying.
- Institutional Demand: ETFs added 54,000 BTC in July, while treasuries scooped up another 72,000 BTC. Institutions aren’t running—they’re accumulating.
- Technical Support: Bitcoin near $113K puts it right at key support levels. Historically, these setups mark solid entry points.
You can see my crypto portfolio at Crypto Cycle by clicking this link.
This pullback feels more like an opportunity than a warning. Strong earnings, healthy revenues, ongoing crypto accumulation, and seasonal factors all suggest the market’s foundation is firm.
For traders and investors willing to zoom out, this is exactly the kind of dip worth leaning into. Stay disciplined, focus on quality, and view the red not as a stop sign… but as a flashing “sale” sign.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle