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Key Takeaways:
- This chart shows the two dozen stock market corrections since World War II.
- The average correction sees the market fall -14.3% from peak to trough, taking 5 months.
- Recoveries can occur swiftly, taking only 4 months on average.
- Staying invested helps investors to not miss market rebounds.
Methodology:
- This chart shows every S&P 500 correction since World War II.
- Market corrections are defined as declines beyond 10% but less than 20% from the previous all time high.
- Declines of 20% or more are considered bear markets.
- The market bottom is reindexed to 100 and the x-axis measures days before and after the market bottom.
Date Range: January 1950 to present
Source: Clearnomics, Standard & Poor's