S&P 500 Correction: Is American Express Stock a Buy After Plunging 20%?

The S&P 500 index (SNPINDEX: ^GSPC) fell into correction territory on March 13. So, like the Nasdaq Composite (NASDAQINDEX: ^IXIC), it has declined 10% from its highs. That has some investors worried that there's more downside to come. But 10% is nothing compared to the roughly 20% drop that American Express (NYSE: AXP) has experienced. Why is it down so much more than the market, and is it a buy after the big plunge?Howard Marks, who correctly foresaw and made a ton of money during the Great Recession, writes extensively about the market's tendency to cycle between extremes. You can read all about his thoughts in his iconic book The Most Important Thing and its somewhat iterative sequel Mastering the Market Cycle. Without getting too deep into the details, Marks explains that emotions drive people to both overly enthusiastic pricing at one extreme and overly despondent pricing at the other.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool