Price Correction or Time Correction
Do you know the difference between these two types of correction?
A Price Correction is one that happens in a short period of time. Prices correct sharply.
The correction of 2020 was a Price Correction. A sharp correction in a few days or weeks.
A Time Correction is also a Correction in Price but one that happens over a period of time 18 months+).
The Global Financial Crisis of 2008 and Tech Bubble Bursting of 2000 are example of Time Correction.
The overall correction is steep and happens over a period of time.
Time Corrections test the patience of investors for a long period of time. I am not saying that Price Corrections don’t test the patience of investors but generally Time Corrections are far more frustrating.
Your success as an investor lies in successfully navigating Price as well as Time Corrections.
Do you have a plan for navigating through either of these? If so, I would love to hear about it.