Today, the Dow and S&P crossed into correction territory of a greater than 10% drop from the high. Is this a great buy the dip opportunity or not? It depends on whether the correction becomes a bear market, a drop of 20% or more.
According to this CNBC article, since WWII, corrections last an average of 4 months and take 4 months to reach a new high. Bear markets last an average of 13 months and take 22 months to reach a new high. The average correction falls 13% and the average bear market falls 30%.
At this point, the market is 1 week into a correction. We'll see what tomorrow brings.
For more on Crossing Generations, check back Thursdays for a new segment.
This is not financial or investing advice. Please consult a professional advisor.
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