Kiplinger

A Better Way to Tell a Correction from a Bear Market?

The standard definition of a correction is a 10% market decline, while a bear market is a 20% decline. These are simple definitions ... I take a different view.

At Cornerstone, we view a correction as a significant decline within an up trend. The key here is that the up trend continues after the correction is over. Two examples are the crash in 1987 and the correction of 1990. In both cases, the market fell 20% or more, yet they recovered quickly and the up trend continued.

As you can see in the chart

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger5 min read
Should You Supplement Your Traditional 529 with a Private 529 College Plan?
When it comes to the college savings conversation, I usually stick with suggesting the traditional 529 plan when helping people choose the right savings and investment vehicle for the goal of funding higher-education costs. Being in New York gives m
Kiplinger3 min readPolitics
How Much Can You Contribute to the Thrift Savings Plan for 2019?
Employees of the federal government and members of the military can save hundreds of dollars more for retirement this year thanks to an increase in the contribution limits for the Thrift Savings Plan. The maximum amount you can contribute to a TSP a
Kiplinger3 min read
How Much Can You Contribute to a SIMPLE IRA for 2019?
A Savings Incentive Match Plan for Employees IRA, or SIMPLE IRA for short, is a retirement plan designed for small businesses with 100 or fewer employees. Though a SIMPLE IRA is an easier and less expensive plan for employers to set up than a traditi