#MarketPullback

What is a “market pullback”? Let me explain in the simplest way possible.

Imagine that you are selling potatoes 🥔 in your town. Every day the price is normal and business is going smoothly.

One day, someone starts spreading a big rumor:

“There will be a French fries festival 🍟 where people can win prizes for making the best French fries!”

Hearing this, everyone rushes to buy potatoes. Prices rise because there is more demand and fewer potatoes.

Market pullback

Now, sellers from nearby towns, hearing about the high prices, bring more potatoes to sell. As the number of potatoes in the market increases, prices fall again, this time by 25%.

This is a market pullback — a temporary drop due to new competition or supply.