#MarketPullback
A market pullback is a relative decline in the price of an asset, usually ranging between 5% and 10% from its recent peak. It occurs within the context of a general upward trend (bull market) and is often viewed as a natural and healthy correction in the market.
Difference between pullback, correction, and crash
Pullback: A slight and temporary decline, not exceeding 10%.
Correction: A decline ranging between 10% and 20%.
Crash or bear market: A decline exceeding 20% and lasting for a long period.
Reasons for a market pullback
1. Profit-taking: After a period of rising, investors tend to sell assets to take profits.
2. Negative economic data: Such as slowing growth or rising inflation.
3. Monetary policy decisions: Such as interest rate hikes by central banks.
