Given the last couple of days significant drop of the stock markets around the world, CNBC issued a very good article about the history of stock market corrections and bear market. It is very important to study these figures as history normally repeats itself. It will help us to put things in perspective in the middle of this market turmoil and take decisions based on data not based on emotions. Below are the key highlights:
- “The average bull market ‘correction’ is 13 percent over four months and takes just four months to recover,” Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer said in a Jan. 29 report.
- But the pain lasts for 22 months on average if the S&P falls at least 20 percent from its record high — past 2,298 — into bear market territory, the report said. The average decline is 30 percent for bear markets.
- The last week of stock market drops has taken the S&P 500 into correction territory for the first time in two years.
Despite this significant drop, Stocks remain in an upward bull market trend, the second longest in history.
- What to do in the middle of this challenging time ? Please read my last week article
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