A market pullback refers to a temporary decline in stock prices or market indices after a period of sustained growth. It’s typically a short-term correction of 5-10%, caused by profit-taking, changes in investor sentiment, or economic data. Unlike a bear market, pullbacks are not severe and are often seen as healthy for long-term growth, allowing overbought conditions to stabilize. For investors, pullbacks can offer opportunities to buy quality assets at lower prices. However, it’s essential to differentiate between a pullback and the onset of a prolonged downturn.
