Market correction vs. dip: What's the difference?

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In this episode of Stocks In Translation, Yahoo Finance markets and data editor Jared Blikre and producer Sydnee Fried are joined by Callie Cox, the Chief Market Strategist at Ritholtz Wealth Management, to unpack buying the dip and the potential for a correction in 2025.

Cox explains that a “correction is a 10% drop from 52-week highs." She advises long-term investors to accept that investing will have its fluctuations. "There are going to be ups and downs,” she states, but it's crucial to stay vigilant for “that big 20% drop.”

Cox says drops of that magnitude often signal shifts in the economy and markets, particularly changes in the job market. Meanwhile, drops of 5 to 10% should be viewed as mere “icing on the cake” for investors.

Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service.

This post was written by Shelby Boamah.