#MarketPullback What is a market "pullback"?

Imagine you are on a roller coaster. You go very high, then drop a little before going back up.

That small drop before continuing to rise is like a "pullback" in the stock market.

A "pullback" is like a small pause or setback in the price of a stock or the entire market. After prices have risen for a while, it is normal for them to have a small decline before continuing to rise.

Why do "pullbacks" happen?

"Pullbacks" can occur for many reasons:

* Taking a break: Just like you need to rest after playing a lot, the market sometimes needs to take a breather after rising a lot.

* New news: If negative news comes out about a company or the economy in general, stock prices may drop temporarily.

* Profits: Some investors decide to sell their stocks to take profits after the price has risen significantly.

Is a "pullback" a bad thing?

Not necessarily! "Pullbacks" are a normal part of the market. In fact, many investors see "pullbacks" as an opportunity to buy stocks at a lower price before they go back up.