A few weeks ago, people were saying that the market had raced up too fast and a small correction was in order.
Over the past couple of weeks the market went from 10,600 down to just over 10,000. The correction people had predicted came true. This was a good investment opportunity since a correction is a minor affair and not a sign of larger losses.
Now the market has been steadily increasing again and we are nearing the point where we had started a few weeks ago.
Does this mean the correction is over and the losses recovered? Will we now see a steady move higher in stock prices unless some sort of huge event takes place?
I have some fear that the problems in the housing market could lead to a double dip recession, but overall I think the market will continue to go up for the next decade.
I had some worries when the market started going back down. I was fearing some of the doomsayers might have been right as they were predicting a double dip recession another major fall off.
Now that the market is going up again, it is making me feel really good after a couple years of seeing the market and my portfolio going down. Hopefully the market will continue to rise for the next decade and beyond.
If that was a correction that has now been recovered, is there any historical trends showing what happens after a correction? Where do we go from here? I know there are a lot of factors that go into it, but is there any history about how many corrections there usually are during stock market rallies?