Some investors dread a stock market correction for the damage it inflicts on their existing portfolio. Others welcome dips as an opportunity to buy more of their favourite shares at reduced prices. In my case, it’s a bit of both.

The FTSE 100 has fallen 10% since 27 February, which makes it a technical correction. To be called a crash, markets must fall 20%. We’re not there yet. I won’t deny it hurts. I’m not enjoying checking my SIPP and Stocks and Shares ISA. Most days, I don’t look at them.

Yet I also accept that short-term sell-offs happen all the time. We’ve see three of them lately: triggered by the pandemic, the Ukraine invasion, and Donald Trump’s ‘liberation day’ tariffs. Each time a recovery swiftly followed. Short-term volatility is the price investors pay for long-term equity outperformance. To benefit from the wealth-building ability of stocks, investors need to grit their teeth from time to time.

The FTSE 100 is volatile (again)

Before this correction, the FTSE 100 was flying, ending February just shy of 11,000, an all-time high. Today, at 9,865, it’s roughly where it was last Christmas. That’s just three months ago. Over 12 months, the blue-chip index is up more than 14%, with dividends on top. So we need some perspective.

The one big positive is that a whole heap of blue-chips stocks are suddenly trading at much more tempting valuations, and with higher prospective yields. A dozen FTSE 100 stocks have dropped almost 20% over the last month, with Persimmon, Diageo, Melrose Industries, and Barratt Redrow all down 25% or more. All four are suddenly cheaper than there were a decade ago.

Persimmon shares look cheap

Persimmon (LSE: PSM) was struggling before current geopolitical turmoil. The share price is down 4% over 12 months and 60% over five years. Some will run a mile. I see it as a cut-price buying opportunity, for investors willing to take the long-term view, and hold for at least five years and ideally longer.

The UK housing market has been hammered by affordability issues, post-pandemic inflation, rising interest and mortgage rates, and the property cladding scandal. The rising price of labour and materials added to the squeeze. As did the employer’s National Insurance hike, and two inflation-busting minimum wage increases. The end of the Help-to-Buy scheme didn’t help.

Despite all that, Persimmon started 2026 brightly, with full-year results (13 January) showing completions up 12% and a robust order book. The board anticipated underlying profit of between £415m and to £440m. It also anticipated falling mortgage rates (didn’t we all!), but that’s not going to happen now.

Following the latest dip, its price-to-earnings ratio has fallen to a modest 11. The forecast dividend yield for 2026 is a juicy 5.64%. However, if the current crisis drags on, shareholder payouts could come under pressure.

I think it’s worth considering but given today’s uncertainty, I’d advise investors drip-feed money into this or any other stock that grabs the eye. As we saw yesterday (23 March), the market can rebound quickly, but prices could just as easily fall further. Patient, gradual buying is the safest approach. Don’t wait forever though, there are plenty more bargains out there.