#MarketCorrectionBuyOrHODL

When a stock index falls more than 10% from a recent high, it is often said to have entered "correction" territory. This is a fairly neutral term for what can be an unpleasant experience for many investors. What does a correction mean? What could happen next and what can you do to help your portfolio weather the storm? Below are answers to some frequently asked questions:

What is a correction?

There is no universally accepted definition of a correction, but most people consider a correction to have occurred when a major stock index, such as the S&P 500® or the Dow Jones Industrial Average, falls more than 10% (but less than 20%) from its most recent peak. It is called a correction because, historically, the decline often "corrects" and brings prices back to their long-term trend.