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What is a stock market correction?

A stock market correction is a broad decline in major market indexes of 10% to 20%, although there is no formal definition for the term. Corrections are unavoidable facts of life for investors. In fact, one occurs on average about once every two years.

What should you do during a stock market correction?

Corrections are a normal part of the cycle of markets, and the best thing you can do during a stock market correction is to stay the course. Stick to your investment plan and don’t let panic sway your decisions.

How long does a stock market correction last?

How long do stock market corrections typically last? According to Invesco, the average length of a 5% to 10% pullback is three months, while the average time to recover from a 10% to 20% correction is eight months. What is the difference between a stock market correction and a stock market crash?

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