Frequency of Stock Market Corrections
Stock market corrections should not come as a surprise. Corrections are 10% drops from a market high (bear markets are 20% drops).
Since 1900, corrections have occurred once per year on average (Source: Capital Resource and Management Company). As the chart illustrates, there were 3 (nearly 4) corrections from 2010 to last August. We are now in the fourth.
As you can see, however, the trend line is up, despite numerous corrections. This is a normal part of stock market investing.
All information is believed to be from reliable sources however we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Any market indices mentioned are unmanaged and cannot be invested in directly. Additional information, including management fees and expenses, is provided on our Form ADV Part 2. All investments involve risk and past performance is not a guarantee of future results.