However, corrections offer an opportunity to evaluate risk and how well positioned they are for an eventual bear market.
By comparing the intensity, recovery and duration of corrections and bear markets and their impacts on investors, we can assess where risk management efforts should focus.
Investing opens investors up to the possibility of losses — but not all losses are equal. Understanding the differences between a correction and a bear market may help investors better handle or prepare for them.
In the past 20 years, the S&P 500 Index has experienced five corrections…
