What are the different types of market declines?

Question

Do any of you know what market declines occur and what type? What do you think – are there many occurrences in a given year?

Answer 1

When in the stock market, one must first understand their three types of market declines. First, there has been the market correction which averages having occurred at least once every 1.2 years since 1980 and is defined as a fall of at least 10% from a recent peak. The second type of decline is the bear market which defines an occurrence that happens every 4 years and 8 months cut prices by more than 20%. Lastly, a stock market collapse is the third type, this is said to take place when there is over 30 % decrease in the market and such events are rare.

Comments

It's worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

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Markets look like 2015-16. Probably going back to all time highs, but will probably go sideways until fed signals rate cut, Recently sold 25% of my $285k portfolio comprising of plummeting stocks that were recommended by certain financial commentators, quite devastating!