Why Last Week's Market Sell-Off Was a Good Thing

The S&P 500 dropped 4.4% on November 5, 2026, wiping out $3.7 trillion in market value due to overextended valuations (Shiller P/E ratio at 41) and concerns about Democratic policies affecting AI data-center development. The author argues this correction is healthy, comparable to small forest fires preventing larger ones, and offers buying opportunities. Markets rebounded the next day, and historically, the six months following midterm elections have been positive for stocks.