As an investor, you may be gaining familiarity with the term “market correction.” But what does it mean? And, more importantly, what does it mean to you?
A correction occurs when a key index, such as the S&P 500, declines at least 10 percent from its previous high. A correction, by definition, is short-term in nature and has historically happened fairly regularly – about once a year. However, over the past several years, we’ve experienced fewer corrections, so when we have one now, it seems particularly jarring to investors.
How should you respond to a market correction? The answer may depend,...
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