5 Things You Should Know About Stock Market Corrections

Corrections are usually short-lived

According to convention, a 10% drop in the stock market from a recent high is considered a correction. At this rate, the S&P 500 has seen 36 corrections, or one correction every two years on average, since 1950. As many as 22 out of these 36 corrections lasted for less than four months.

A review of historical stock market fluctuations shows that the length of corrections has been getting increasingly shorter. Corrections thus should be seen as a buying opportunity and not a time to sell.

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