Don't Sweat the Small Stuff Revision as of Monday, 1 July 2024 at 15:33 UTC
Recognizing common market tendencies can help you keep your cool. Below, the frequency and severity of various types of downturns from 1945 through 2022
Market Drops | Occurrences | Average Decline | Months to the Bottom | Months to Recovery |
---|---|---|---|---|
Pullbacks (5.0% to 9.9%) | 61 | -7% | 1 | 1.5 |
Corrections (10.0% to 19.9%) | 23 | -14% | 4 | 4 |
Bear markets (20%+) | 13 | -33% | 13 | 27 |
Garden-variety bear (20% to 40%) | 10 | -27% | 10 | 14 |
Mega meltdown (40%+) | 3 | -51% | 23 | 58 |
Source: CFRA, S&P Global