Corrections Vs. Bear Markets: Why 20% Declines Are Obsolete
The article discusses the evolving nature of market corrections and bear markets, suggesting that traditional definitions of a 20% decline may no longer be relevant. It highlights the significant gap between current market prices and long-term fair value, which is wider than during the dot-com bubble. The author argues for a reevaluation of how investors perceive market downturns in light of these changes.
- ▪The distance between current prices and genuine long-term fair value is wider today than at any point outside the dot-com peak.
- ▪Traditional definitions of market corrections and bear markets may be outdated.
- ▪Investors are encouraged to reassess their understanding of market declines.
Opening excerpt (first ~120 words) tap to expand
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Seeking Alpha.
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