#MarketPullback
A market downturn is a temporary decline in the prices of stocks or financial assets, usually occurring after a period of increase. It can be a result of changes in supply and demand, or due to economic and political events.
Causes of a Market Downturn
1. *Economic changes*: Changes in monetary policy, inflation, or unemployment can affect the market.
2. *Political events*: Political events such as elections or changes in government policy can affect the market.
3. *Changes in supply and demand*: Changes in supply and demand for stocks or financial assets can affect the market.
How to Deal with a Market Downturn
1. *Holding investments*: Sometimes, it is better to hold investments and not sell during a downturn.
2. *Rebalancing*: Rebalancing the investment portfolio can help reduce risks.