Market correction
A market correction refers to a decline of 10% or more in the price of a security, asset, or financial market. Corrections can last for varying durations, from days to months, and can be triggered by a range of factors, from macroeconomic shifts to company-specific issues. While corrections can be challenging and may significantly impact investment portfolios in the short term, they are often considered positive for both the market and investors. Market corrections help readjust and recalibrate asset valuations that may have become unsustainably high, providing opportunities for investors to purchase assets at discounted prices. Despite the short-term fluctuations and potential panic they can induce, corrections are a natural part of market cycles and can contribute to the long-term health and stability of financial markets.