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FC MARKETS

Markets, money and the economy, explained for American investors

Topic

Drawdown

1 article

Market Outlook

Bear Markets and Corrections Explained: What Past Declines Show

A 10% fall is called a correction and a 20% fall a bear market, but the labels say little about what happens next. This guide explains the definitions, how US market declines have differed in cause, depth and length, the safeguards that kick in on volatile days, and how investors plan for drawdowns.

6 min read