#MarketPullback A market pullback is a short-term decline in the price of assets within a larger upward trend. Unlike a correction, which generally refers to a 10% or more drop, a pullback is typically less severe—often between 3% to 5%—and can last anywhere from a few days to a few weeks. Pullbacks are a natural part of market behavior, often caused by factors like profit-taking, changes in investor sentiment, or macroeconomic news that temporarily disrupt investor confidence. While pullbacks may create some volatility, they don't signal a fundamental change in the overall market trend. In fact, many investors view pullbacks as opportunities to buy quality assets at discounted prices, as markets historically have tended to rebound after such declines. Recognizing the difference between a pullback and a broader market downturn is crucial for investors looking to manage risk and capitalize on growth potential.
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