market correction


A move in a stock, bond, commodity or other investment that is in the opposite direction of the prevailing trend. This is typically mentioned following a rising (or bull) market. Often this occurs because an investment is seen as over or undervalued. Also called market reversal.

Use market correction in a sentence

While we were heavily invested the Stock Exchange was rocked by a Market Correction causing our investments to take a dive.

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After a tough and cold winter, many stocks have reported lower than expected earnings for the first part of the year, causing many to fear a market correction that could see many stocks that investors see as overvalued lose value.

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Analysts have increasingly been alerting investors as to the likelihood of a market correction and have suggested the use of protective puts to minimize the impact to their clients.

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