How often is there a 10 correction in the stock market?

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12-12-2022
Business

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How often is there a 10 correction in the stock market?

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Tom056 Tom056 · Answer 1 · 2022-12-17T11:31:18+01:00

Once every two years there is a 10% correction in the stock market.

Although there is no official definition for the term, a stock market correction is a significant decrease in key market indices of 10% to 20%. For investors, corrections are an unavoidable reality of life. In actuality, one takes place on average once every two years.

Corrections may take days, weeks, or even months to complete.

A correction can be advantageous by bringing excessive asset prices down and creating buying opportunities, despite being harmful in the short term.

Black Monday, also known as the 1987 stock market crash, is renowned for having the biggest single-day percentage fall in the history of the American stock market.