The Lesson From Stock Corrections Past? 200 Days of Pain

  • S&P 500 fell 14% on average in five similar selloffs since ’09
  • Current rout would rank at bottom in duration if ended now
Mark Newton, president and founder of Newton Advisors, explains his cautious optimism about the S&P 500 Index.(Source: Bloomberg)
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Remember the last time stocks fell so hard? You probably don’t, and that’s making today’s market seem harsher than it is.

It’s a fact of the life of the mind -- things always seem worse in the present. In reality, they’re not. In this bull market alone there’s been five other corrections like this one, and it’s taken around seven months on average for equities to climb out of their hole. Based on that path, the current jitters won’t be fully eradicated until August.