In the stock market lingo, a correction means a reverse movement going towards a negative figure by at least 10%. This usually happens in order to adjust for an overvaluation in stock prices. However, these corrections are just temporary downward movement but is oftentimes believed to be a signal that a bear market is about to happen or in worst case scenario, a recession.
Many people who are recently introduced to stock market begin to panic whenever they hear the “oldies” mention about the “correction scare” or the “big downturn”. Even if a correction would actually mean a good opportunity for new investors to pack in their savings and funds into the stock market.
But should new investors really have to wait for the stock market correction to happen before they start putting in their money? Continue reading Is It Correct To Wait for Correction?