Navigating Market Corrections: Price vs. Time

1. Price Correction:
- Happens to companies with poor fundamentals or deteriorating business models.
- These companies gradually lose stock value over time. 

 2. Time Correction:
- Occurs during a re-evaluation of the stock’s price-to-earnings (PE) ratio.
- The stock’s valuation adjusts up or down.
- A positive PE re-rating leads to a price increase (e.g., Railway stocks last year, IT stocks post-COVID).

 Advanced investors find it easier to avoid price corrections. In the Current Bull Market:
  - High PE stocks can be risky, as they’re more likely to face time corrections. 
 - It's important to recognize that some companies experiencing a price dip don’t necessarily fall into either correction category and may actually be poised for positive PE re-rating. Stay informed and make smart investment decisions!