The markets have rebounded in 2023, remaining resilient despite high inflation, elevated interest rates, bank failures, and a tepid economy. The S 500 is up about 16% year to date (YTD), while the Nasdaq Composite has gained around 33%.

Most predictions have been off this year, as many were calling for a recession and a flat stock market. Where it goes from here is anyone's guess, but the potential is always there for a market correction. Fortunately, there are some bedrock principles you can follow that can guide you through whatever short-term volatility comes at you -- including another market correction. 

You've probably heard the terms correction, crash, and bear market thrown around, and all indicate a declining stock market. A correction is a slump of at least 10% and less than 20% over any given time period. A crash is typically an abrupt and dramatic drop, usually more than 10%, but happens over a very short period, while a bear market -- like we saw in 2022 -- is a decline of more than 20% that lasts several months or longer.

Continue reading

Source Fool.com