#MarketPullback How does an investor know if the market is in a correction or the start of a bear market? Many investors have a difficult time distinguishing the differences, and the psychological toll of watching the market drop day after day can lead to poor decision making.

The severity of sell-offs needs to be understood, especially in a trading environment where markets have experienced recent all-time highs and the economic, political and geopolitical risks seem to be front and center.

Pullback

A pullback is a market drop of 5-10% and is very short term. It is a dip from a recent high during an ongoing bull market while upward momentum is still intact, and is a normal adjustment to a market cycle. The drops typically do not change the market sentiment or outlook. According to asset management and investment firm Guggenheim Investments, the S&P 500 Index has experienced 80 pullbacks since 1945 and had five separate 5% pullbacks in 2018 alone.#TRX