Investment • 692 • 4
The short-term trader can sell, but this situation exists for three to four months in Dalal Street. Corrections are a wonderful strategy to enhance existing positions or invest less in new businesses.
There is a saying in Dalal Street — When the Us market x% correction, the Indian market follows x/2%.
A market index's or an individual asset's price continuously declining is known as a correction. A 10% to 20% decline in value from a recent peak is considered a correction.
On the other hand, when you mention a market correction, many investors automatically picture a crash or a bear market!
Generally, an economic shock or a significant social event causes investors to pause, stand back, and assess what's happening in the rest of the globe, which is when the U.S. stock market experiences a correction. Experienced analysts and investors always look forward to a correction in the stock market because it allows the market to stabilise before hitting new highs.
Remember, a market crash is a long-term journey in maximum time and can signal recession but not a market correction.
To decouple your portfolio from this, you should have a mixed portfolio containing — Stocks, Bonds, Commodities, and MF.
Share with your network