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The market is not done yet. Here are a few stats about corrections courtesy of The Motley Fool:

  • Corrections occur on average of every 357 days.
  • Between 1945 and 2013 the average correction was 13.3% and lasted 71.6 trading days (14 calendar weeks).
  • Predicting when corrections will occur regularly is impossible.
  • Corrections do not matter unless you are a short term trader.
  • Corrections are an opportunity to buy high quality stocks at a bargain.
  • Corrections are a reminder to reassess your holdings, rebalance your schedule and your overall plan for navigating volatile markets.

Corrections usually do not result in bear markets – an economic pullback which results in a hit to growth in company earnings. Recession is the primary cause of bear markets. Meanwhile GDP for the third quarter came in stronger than expected at 3.5%.

Please see the October 11 Global Perspectives blog, Stick to the Plan and Don't Fight the Fed.

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