Major Stock Market Corrections (Dow since 1900)





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As a result of a whole host of issues (e.g., inflation, rising interest rates, war, endemic, etc.), the stock market has struggled.

In fact, the Dow is currently down 18% from its early January peak.

So how does the current stock market correction compare?

To answer that question, today’s chart presents the performance of the current correction (orange dot) to all other major corrections since 1900.

Conclusion…

To date, the current correction could be classified as relatively short in duration and relatively low in magnitude when compared to the average.

It is worth noting that half of all major stock market corrections lasted less than 210 trading days (or about 10 months).

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Stock Market Corrections (Dow since 1900)

What is a bear market?

A bear market is typically considered a greater than 20% decline of a major stock market index such as the Dow or S&P 500.

What is a major bear market?

A major bear market is considered a 30% or greater decline of a major stock market index.

What is a major stock market correction?

While a stock market correction refers to a major stock market index decline of more than 10%. A major stock market correction ups that threshold to 15%.

How frequently does a major bear market occur?

Since 1900, there have been 31 major stock market corrections as measured by the Dow or about one every 3.9 years..