A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset. A correction has a shorter duration than a bear market or a recession, but it can be a precursor to either.
 | | | Correction | A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. The latest stock market correction occurred on February 8, 2018 as the DJIA and the S&P 500 fell more than 10% from their recent highs hit in late January, 2018. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset. A correction has a shorter duration than a bear market or a recession, but it can be a precursor to either. A correction is very different from a crash since it measures the the percentage decline from the most recent high. A crash is generally considered to be a 10% or more decline, irrespective of the most recent high.
| | | | | | | | | | | Sell-Off | | A sell-off is rapid selling of securities, such as stocks, bonds and commodities which leads to a decline in the value of the security. Read More | | | | Buy A Bounce | | A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Read More | | | | | Hedge | | A hedge is an investment to reduce the risk of adverse price movements in an asset. Read More | | | | Bear Market | | A bear market is a market in which securities prices fall and widespread pessimism causes the negative sentiment to be self-sustaining. Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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