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Market correction

A market correction for any type of market (real estate, stocks, crypto etc.) is when that market declines by more than 10% (but less than 20%) from its most recent peak. It's called a correction because historically the drop often "corrects" and returns prices to their longer-term trend.

The rule of thumb regarding market corrections is that you won't know it's a market correction until it's officially over and things start being on the rise again.

A market correction is by definition a drop of less than 20%. Between the time when the market enters the "correction territory" of a more-than-10% decline and when it stops falling, you won't know if it's "just" a correction, or a more serious market crash, which is usually defined as a rapid market drop of more than 20%. 

Or, potentially, the market correction could also become a bear market, defined as a prolonged period of market decline of more than 20%.

See also: Bear market

Extra reading:

https://www.forbes.com/advisor/investing/what-is-market-correction/ 

https://www.usbank.com/investing/financial-perspectives/market-news/is-a-market-correction-coming.html 

https://www.fool.com/investing/how-to-invest/stocks/stock-market-corrections/ 

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What are the factors that make the Eastern European real estate market a good investment opportunity? We analyse the economic and political highlights that make this area great to invest in.

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