Bull Market Corrections: What to Know & What to Do

Equity Markets are the Master ManipulatorWhy do most active investors lose money over time? The answer is recency bias. Recency bias is the tendency for investors to emphasize recent events and price action when sizing up the market and making trading decisions. Nowhere else is the psychological phenomena of recency bias more on display than on Wall Street. When stocks pull back after an extended bullish move, investors flip on a dime, thinking the worst is ahead and a major bearish market correction loom.W ...