Corrections & Crashes

The difference between a pullback, a correction and a crash, real examples from 2025 and 2026, how long recoveries took, and how to prepare before the next one.

Declines are normal

Markets rarely go straight up. Declines of 5% or more happen most years, and declines of 10% or more happen regularly. A pullback is usually a drop of 5% to 10% from a high. A correction is a drop of 10% to 20%. A crash is a very fast, severe decline, often happening over days or weeks rather than months.

Pullbacks, corrections and bear markets, by depth.

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