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Stocks should fall further. Here's why

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The Dow has started the year with a stumble, dropping more than 300 points Monday and another 200 by the middle of Tuesday. And that drop is exactly what the market needs, according to CNNMoney. In fact, it needs to flat-out tumble in order to stay strong.
 
Currently, the drop represents a minor correction of only 4 percent from the Dow's and S&P 500's all-time highs. A 10 percent pullback is the benchmark for a proper correction and is what the market sorely needs, the report states.
 
Several market factors could trigger a bigger slump, including the slide in oil prices, overpriced stock valuations and investors rushing to buy bonds, considered a safe haven for cash when the market is volatile. If these factors cause a 10 percent correction, speculators might shy away from the marketsb which would make long-term investors happy, according to CNNMoney.

Read more from CNNMoney.

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