#MarketPullback

A market pullback refers to a temporary decline in the price of a financial asset or overall market, typically ranging from 5% to 10% from its recent highs. This pullback is generally seen as a natural part of market cycles and is often caused by short-term factors like economic news, investor sentiment, or profit-taking. Pullbacks are usually viewed by long-term investors as opportunities to buy assets at lower prices, assuming the underlying fundamentals of the asset or market remain strong.

It’s different from a market correction, which usually refers to a decline of 10% or more, and a bear market, which is a prolonged period of declining prices, typically over 20%.