Pullback
A pullback occurs when markets drop below a recent price high.
- Typically are mild and short lived
- Typically range from 0 - 9.9% drop
- Pullbacks are natural and part of markets - wouldn't have a real market without them
- Some investors welcome them as ways to purchase at lower prices
- Even though pullbacks are natural and not very significant, even small 3-5% pullbacks can cause significant anxiety for investors
- It's hard to tell ahead of time if pullbacks will evolve into a larger correction, bear market, crisis, panic, or even depression