Wednesday, March 5, 2008

Historical Corrections

Every now and then Bespoke Investment Group puts together a graph that really helps put current market events in historical perspective. The graph below is such a graph. It shows all market corrections in the S&P 500 dating back to 1927. You can see that this current correction is already longer than the typical correction, though it isn't as deep:


There have only been 4 corrections that have lasted longer than a year and roughly 6 that have led to declines over 35%. One final note, this current "correction" will only turn into a "bear market" if the S&P 500 falls below 1260.87, which is roughly 6% below the current level of the market.

Hat Tip: Bespoke

Posted by The La Jolla Guy at 8:59 AM

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