Periods of S&P 500 Correction Above 10% Due to the U.S. stock market’s dominant position, a correction exceeding 10% frequently triggers a domino effect across global equity markets, as investors react to heightened uncertainty and risk aversion. Image: Goldman Sachs Global Investment Research
S&P 500 Performance After Enters a 10% Correction, But Doesn’t Go into a Bear Market Historically, when the S&P 500 falls 10% without entering a bear market, it’s a potential buying opportunity. Since 1950, it has always been higher 6 and 12 months later, with a median 12-month return of 15.2%. Image: Carson Investment Research
How Often Does a Correction Turn into a Bear Market? Historically, a 10% correction rarely leads to a 20% bear market without economic downturns, earnings declines, or rate hikes. With no very serious adverse indicators currently, a bear market seems unlikely in the near term. Image: Carson Investment Research
S&P 500 and Days Without a Correction to 200-Day Moving Average The S&P 500 is experiencing an impressive streak of 253 trading days without a correction to its 200-day moving average, indicating strong bullish momentum that could potentially continue in the near term. Image: Real Investment Advice
Do You Believe the Risk of an Equity Market Correction at Some Point Over the Next 3-6 Months Is High or Low? JPMorgan’s survey reveals that 82% of their clients anticipate a high likelihood of an equity market correction within the next 3-6 months. Image: J.P. Morgan
Size of S&P 500 10%+ Corrections It’s the 4th worst non-recessionary correction for the S&P 500 since World War II. Image: Deutsche Bank Asset Allocation
S&P 500 Corrections and 1-Year Performance Following Correction by Presidential Cycle Is the S&P 500 headed for a big correction in 2022? Image: Strategas Research Partners
Survey – Equity Correction Should investors expect a 10% S&P 500 correction before year end? Image: Deutsche Bank Research
Survey – Do You Think There Will Be An Equity Correction Before Year-End? Should investors expect a 5-10% S&P 500 correction in 4Q21? Is the consensus right or wrong? Image: Deutsche Bank Research
Correction – S&P 500 and Marshallian K With U.S. GDP growing faster than M2 money supply, the S&P 500 is vulnerable to a correction. Image: Bloomberg
S&P 500 Index – Number of 10% Corrections Per Year 10% corrections are fairly common for the S&P 500 Index. Since 1950, there has been an average of one per year. Image: LPL Research