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The stock market’s delivered some stunning performance in 2025. Both UK and US stocks have endured some notable volatility throughout the year. Nevertheless, both have gone on to reach record highs, delivering impressive returns for investors.
However, with concerns brewing of an artificial intelligence (AI)-fuelled tech bubble and a weakening economic environment with stubborn inflation, analysts have begun warning of a looming correction… perhaps even a full-blown crash.
While most see that as a scary forecast, the intelligent investors see it for what it actually is – a massive opportunity to grow wealth.
Stock market corrections and crashes create some of the best buying opportunities investors can ask for. And with the right strategy, investors can potentially unlock jaw-dropping returns in the years that follow. Here’s how.
Profiting from market panic
When investors panic, stocks can freefall. Top-tier companies can see their market-caps evaporate even if their financials remain in tip-top shape and their long-term trajectory remains perfectly intact.
Perhaps a perfect example of this from recent years would be Shopify (NASDAQ:SHOP). The e-commerce platform was decimated in early 2022 as rising inflation and interest rates spooked the markets, resulting in a painful 85% drop from its November 2021 high to October 2022 low.
With inflation driving up the cost of living, investors feared a sharp slowdown in consumer spending would adversely impact Shopify’s revenue and cash flow. And to be fair, that did happen with growth decelerating and gross margins shrinking.
However, panicking investors who were only focused on the short-term ignored the longer-term trends of e-commerce spending. They also seemingly forgot that Shopify powers close to one-third of all US online stores, making it perfectly positioned to bounce back once economic conditions stabilised.
That’s why when everyone else was selling, I was busy snapping up shares at a major discount. And over the next three years, my opportunistic investments enjoyed a near 400% return.
Ready for round two
With valuations reaching record highs and the US consumer spending environment once again looking shaky, Shopify appears exposed to another potential price correction. Perhaps it won’t be as severe as 2022, but if the suspected AI bubble bursts simultaneously, the stock market could once again be dragged into extreme volatility.
There’s no guarantee that disaster will strike. But if the bears are right in their predictions and Shopify gets caught in the crossfire once again, I’ll likely be buying once more.
The firm’s technological ecosystem continues to expand, offering new solutions far beyond payment processing and website hosting.
The Shopify platform allows businesses to synchronise both their online and brick & mortar operations, secure financing, automate tax filings, execute marketing strategies, as well as provide a fully-fledged fulfilment solution for merchants to handle shipping and lower deliver costs.
Of course, even at a discount, Shopify shares still have their risks. Amazon’s expanding into creator-owned stores, resulting in direct competition. And with most of the group’s merchants being small- and medium-sized businesses, Shopify remains highly exposed to economic slowdowns, particularly in the US.
Nevertheless, with a track record of navigating uncertain market conditions at the right price, I think the risk is worth the reward for me. And it’s not the only growth stock I’ve got my eye on if the stock market decides to throw another tantrum.
