market correction

USAGE SUMMARY

The phrase "market correction" is correct and usable in written English.
It is typically used in financial contexts to describe a decline in the price of a security or market that occurs after a period of rising prices, often to adjust to more sustainable levels. Example: "After several months of rapid growth, the stock market experienced a market correction, leading to a decrease in share prices across various sectors."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

55 human-written examples

"This is not a market correction".

The New York Times

Call it a market correction.

The New York Times - Sports

"There has definitely been a market correction," Mr. Taylor said.

The New York Times

"Is it a normal market correction or being jiggled?

The New York Times

UBS blamed the "market correction" that saw stockmarkets tumble in the early summer.

The Economist

After a high-scoring early season, N.F.L. offenses have entered a period of market correction.

The New York Times

Before the market correction, things felt much like a get-rich-quick game.

The Economist

A major league general manager described the changes, in essence, as a market correction.

The New York Times - Sports

They talk bravely about an overdue market correction and a shake-out rather than a bubble.

The Economist

Human-verified similar examples from authoritative sources

Similar Expressions

2 human-written examples

This doesn't mean that the stock-market correction was irrational.

The New Yorker

Higher unemployment would be one possibility: it might turn the housing-market correction into a rout.

The Economist

Expert writing Tips

Best practice

Use "market correction" to describe a moderate decline in asset prices, typically after a period of increase. Avoid using it for major economic crises or long-term bear markets.

Common error

Don't confuse a "market correction" with a full-blown recession or bear market. A "market correction" is generally a shorter, less severe decline, whereas a recession involves broader economic factors.

Linguistic Context

The phrase "market correction" functions primarily as a noun phrase, serving as a subject or object in sentences related to finance and economics. Ludwig examples show it used to describe events or anticipate potential economic shifts.

Expression frequency: Very common

Frequent in

News & Media

75%

Formal & Business

15%

Wiki

5%

Less common in

Science

3%

Encyclopedias

1%

Reference

1%

Ludwig's WRAP-UP

The term "market correction" is a very common noun phrase used primarily in news and business contexts to describe a moderate decline in asset prices, often after a period of growth. As Ludwig AI indicates, the phrase is grammatically correct and used to explain financial market adjustments. While often used in neutral and professional contexts, it's essential to avoid confusing it with more severe economic downturns like recessions or bear markets. Understanding its proper usage is key to accurately interpreting financial news and reports.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Stock market adjustment

Focuses specifically on the stock market, while "market correction" can apply to various markets.

Market pullback

Implies a temporary dip in the market, often less severe than a full "market correction".

Price adjustment

A more general term applicable to any price change, not specific to market declines after a rise.

Market slump

Suggests a sudden and significant fall in market prices.

Asset repricing

Focuses on the change in prices of specific assets within a market.

Economic downturn

Indicates a broader economic decline, which a "market correction" might precede or be a part of.

Financial readjustment

Broader term that includes more than just market values that are re-evaluated.

Bear market

A prolonged period of declining stock prices, more severe and lasting than a "market correction".

Value recalibration

Indicates a reassessment of asset values in the market.

Trading decline

Highlights a reduction in trading activity and prices.

FAQs

What does "market correction" mean in finance?

In finance, "market correction" refers to a decline of 10% or more in the price of an asset (like a stock or bond) or a market index, from its recent peak. It often occurs after a period of rapid growth.

Is a "market correction" a good time to invest?

A "market correction" can present an opportunity to buy assets at lower prices. However, it's crucial to conduct thorough research and consider your risk tolerance before investing during a market downturn. Consider alternatives like "value investing".

What are some signs that a "market correction" is coming?

Signs can include high price-to-earnings ratios, increased market volatility, rising interest rates, and negative economic news. However, predicting a "market correction" with certainty is impossible.

How long does a "market correction" typically last?

The duration of a "market correction" can vary. Some may last only a few days or weeks, while others can extend for several months. The length depends on various economic and market factors.