CNBC’s Jim Cramer defined Wall Street terms for investors, including correction, rotation and execution.
Published 3 mins agoCNBC's Jim Cramer defined Wall Street terms for investors, including correction, rotation and execution.
Cramer said a correction can occur when the market, or just an individual stock, has been roaring, but then suddenly sees a steep decline. Cramer said he knows corrections can seem like the end of the world, but emphasized that stocks can usually bounce back, especially coming off a particularly high run.
Cramer also defined rotation, which is when money flows out of one sector and into another. He suggested minimizing losses due to rotations by having a diverse portfolio. This way, when one sector falls out of favor, investors won't get completely annihilated.
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