#MarketPullback

A market pullback refers to a temporary decline in stock prices or indices, typically ranging between 5% and 10% from recent highs. Unlike prolonged bear markets, pullbacks are short-term corrections within a broader upward trend, often driven by profit-taking, economic uncertainty, geopolitical tensions, or shifts in investor sentiment. For example, concerns over inflation, interest rate hikes, or weak earnings reports can trigger such retreats. While unsettling, pullbacks are normal in market cycles and can present buying opportunities for long-term investors. However, timing the market remains risky. Diversification and disciplined strategies, like dollar-cost averaging, help mitigate risks. Historically, markets often recover post-pullback, reinforcing the importance of staying focused on fundamentals rather than short-term volatility. Prudent investors use these phases to reassess portfolios and align holdings with financial goals.