What’s the Difference Between a Bear Market and a Stock Market Correction?

stock market correction

When it comes to stocks, investors tend to want to see one thing: the price of their shares going up and up. Unfortunately, continuous upwards growth isn’t always possible, and sometimes the market takes a dip.

In some cases, that dip will cause a fair amount of panic among investors. But those who are in it for the long turn should know that a drop in the market isn’t always a reason to panic. In fact, the occasional fall isn’t just typical, it’s to be expected.

Related: What Happens if the Stock Market Crashes? Is Your Money Safe?

Difference Between a Bear Market and a Stock Market Correction?

Whether you are working with a professional advisor or not, part of smart financial planning involves being able to recognize the differences between a natural correction in the stock market and an actual bear market. Here’s what you need to know.

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