Insight - A stock correction doesn’t mean the market was wrong

The first thing to know about corrections is that they are common. There have been 33 of them since 1950 for the S&P 500, and it has been almost two years since the last one, according to LPL Financial.

THE S&P 500 Index officially fell into a correction on Tuesday, tumbling 10% from its record high on Jan 3. The benchmark for United States stocks extended its decline on Wednesday, dropping as much as 1.8%.

The word “correction” implies something was “wrong” with stocks.