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Is It Time for a 'Normal' S&P Correction?

By Helene Meisler

About this article:
Ever since the March 2009 low, the corrections in the S&P 500 have been marginal. We have had a handful of times when the correction got to 5% or 6%, but those times often occurred when we had a 2% or 3% whack in a matter of a day or two right at the end of the move. So in terms of time, the corrections were sharp and short. However, if we look at the Russell 2000 we see two very distinct corrections -- both in double digits. From May to July, the Russell lost more than 10% in the course of two months. That is a normal and typical correction in my view as it took place over the course of time and reduced much of the excess. In the fall, the Russell experienced a shallower correction, this time just around the 10% mark, but it too...

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