Correction

Peter Lynch defines a 10% drop as a correction in the stock market. A correction would be a drop in the stock market that does not change the prevailing uptrend. Which would imply that the stock market would eventually continue the uptrend. By definition, a correction can only be ascertained after the fact, during a retracement in the stock market, it is impossible to know whether it is a correction or a full fledged bear market.
George Soros believes corrections reinforce the beliefs of market participants that a bull market is strong(when the uptrend is resumed and a new high is made), eventually leading to speculative excesses, paving the way for a bear market.

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