#MarketPullback Understanding Market Pullback
A market pullback is a short-term decline in stock prices, typically between 5% to 10% from recent highs. It often follows a strong upward trend and reflects temporary investor caution. Pullbacks are normal and healthy, helping markets avoid overheating. Unlike corrections or crashes, pullbacks are brief and usually rebound quickly. They can be triggered by profit-taking, economic news, or technical resistance. Smart investors view pullbacks as buying opportunities, not reasons to panic. By staying focused on long-term goals and avoiding emotional decisions, investors can use pullbacks to strengthen their portfolios and make informed choices.
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