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Correction

A correction in the investment world is typically thought of as a price decrease of 10% or more from a security's most recent peak. Corrections can affect both an index measuring a collection of assets as well as individual assets like a stock or bond. A correction can affect an asset, index, or market for a short while or for extended periods of time—days, weeks, months, or even longer. The typical market decline, however, only lasts three to four months on average.

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