ask yourself crash or correction, page-4

Alan Kohler when presenting the finance report on ABC TV tonight threw up a graph showing the extent of the current market decine and the declines that have taken place in recent times.

While not actually coming out with it and calling the current decline a 'crash' he did say of it that "this is no correction" - does he therefore mean, by default, that he thinks it will become (or is) a crash?

Interesting position he has taken.

I believe that this will not evolve into a market crash but will become a severe market correction.

I guess that brings us to the next question .... how does one define and distinguish between a "crash" and a "correction" (a severe correction at that) ...... when does a severe correction tip over into a 'crash'?

Is a crash a market decline (based on the All Ords Index) of over 10% ? .... if that's the benchmark definition I reckon it won't evolve into that - hence 'market correction' seems to fit the bill. But ... I could be very wrong.