The Anatomy of a Market Correction

Market corrections are hard to stomach for most investors. After watching the markets solidly rise for a period of time, seeing a sudden decline can be very unnerving.

However, these fluctuations are very common. A market correction is defined as a short-term duration market move between -10% and -20%.

These significant declines can be a “gut check” for individual investors, especially for those who haven’t experienced many of them in their investing careers. This is a time when working with a financial advisor can stop you from making irrational decisions and stick to your long-term plan.

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Image courtesy of Visual Capitalist