Market correction


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Related to Market correction: bear market

Market correction

A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values.

Market Correction

A drop in the price of a security when that security has been overbought and therefore overpriced. Market corrections are usually short-term and are necessary for the stability of the security.
References in periodicals archive ?
The 2017 Q3 Wells Fargo/Gallup Investor and Retirement Optimism Index found that only half of investors (49 percent) would likely turn to a professional financial adviser to help them through a market correction.
However, many financial analysts warn that the market is overinflated and that a market correction -- a decline of at least 10% from its most recent high point -- is inevitable before the end of the year.
Wells Fargo/Gallup found that concern about a market correction was not prompting most investors to proactively shield their portfolio, as only 48% said they were consulting with a financial advisor and 40% were rebalancing their portfolio in anticipation of a correction.
But according to the business executives surveyed by London Business School, a drastic market correction this time around is unlikely.
But then, in a market correction, nobody can really say anything to appease those who have just lost a lot of money.
The free market correction took far longer and it needed two coffee crises before supply and demand became balanced.
Nonetheless, amid the huge stock market correction after the US rating had been cut, Russian sovereign bonds attempted to grow, but such was market uncertainty that after a while investors started to sell even Russian Eurobonds.
The market correction appears to be approaching the bottom in terms of sales volume, and we expect the supply-demand balance to improve considerably before long.
Also, any unanticipated increase in producer selling or large-scale disinvestment by speculative investors could force a market correction, and depending on the size of the fund liquidation, possibly down to the $880 to $920 range.
Residential real estate in California may be overvalued by as much as 26 percent but the anticipated market correction won't bring a sharp price decline, according to a research report released on Tuesday.
These are the sectors that should find it most difficult to de-link from a US equity market correction.
But some analysts worry that overvalued offerings and an FDA without leadership (Commissioner Mark McClellan left earlier this year) will lead to a market correction.