What’s the difference between a short-term “market correction” and a “bear market” or a “crash”? A joke says that the difference is not how far stocks have fallen, or for how long: “A correction is when you lose money and a bear market is when I lose money.” The “correction” joke has been cited in print since at least 2005 and appears to be most popular in Australia.
A similar phrase—“A recession is when your neighbor loses his job; a depression is when you lose your job”—has been cited in print since 1954. “Minor surgery is surgery that happens to someone else” is another similarly themed expression.
The Free Dictionary
A drop in the price of a security when that security has been overbought and therefore overpriced. Market corrections are usually short-term and are necessary for the stability of the security.
Google Groups: AIII (Association of Indian Individual Investors)
From: “Ravindran, Padmanabhan”
Local: Tues, Jun 21 2005 8:01 am
Subject: Money Misery Madness
A correction is when you lose money; a crash is when I lose money.
Larry Adler, businessman
The Age (Melbourne)
Bad cliches abound as investors herd towards the cliff
June 10, 2006
“What’s the difference between a correction and a crash? A correction is when you lose money, a crash is when I lose money”.
Courier Mail (Australia)
Markets were all ordinary
by Neil Wiseman From: The Sunday Mail (Qld) July 22, 2007 12:00AM
By the end of the week, with the shock waves starting to subside and the rationalist commentators holding sway, reports were referring to a “correction” rather than a crash. FAI chief Larry Adler understood the nuance: “A crash is when I lose money. A correction is when you lose money.”
Aussie Stock Forums
18th-January-2008, 10:56 AM
Re: Correction or crash?
If there is going to be a poll the definitions need to be correct first.
A correction is when you lose money.
A crash is when I lose money.
Getting Technical | WEDNESDAY, JUNE 9, 2010
Correction or Bear Market?
By MICHAEL KAHN
There is an old joke on Wall Street, again paraphrased, that a correction is when you lose money and a bear market is when I lose money. It means that labels of bull and bear are most often dependent on one’s investment time frame and aggressiveness.
New York City • Banking/Finance/Insurance • Sunday, December 05, 2010 • Permalink