Stocks might be undoing their January sell-off, but investors still aren't convinced the worst is over.
That's the worry about the latest 5% pullback: It was neither quick nor drawn out. The total 5.8% decline, which started after the
History reveals how much of an upstream battle stocks must fight to not just break even, but to escape the gravitational pull lower following a 5% pullback. Even so, savvy investors know that while the pullback could easily sour into something more serious, panic selling isn't the answer. Most 5% to 10% pullbacks transpire over a month's time and are completely repaired in two months, on average, Stovall says. Corrections may last five months; on average, recoveries take four.
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