PUTTING THE CORRECTION IN PERSPECTIVE
The stock market remains highly volatile and currently trades significantly lower than where it did three short weeks ago — investors are concerned. For some perspective on the current correction, today’s chart illustrates all major stock market corrections (15% loss or greater) of the last 111 years. Each dot represents a major correction as measured by the Dow. For example, the bear market that began in 1973 lasted 481 trading days and ended after the Dow declined 45%. There are a few items of interest… Since 1900, the Dow has undergone a major correction 26 times or one major correction every 4.3 years. Second, most major corrections since 1900 (62%) have resulted in a drop of less than 40% while lasting less than 400 trading days. Since 1950, the percentage of major market corrections that were less than 40% and 400 trading days increased to 78%. As it stands right now, the current stock market correction (April 2011 peak to most recent low) would measure below average in both magnitude and duration.
Notes:
- Will the Dow crash? The answer may surprise you. Find out right now with the exclusive & Barron’s recommended charts of Chart of the Day Plus.
Hey TPC?
Didn’t you blame this latest correction on the termination of QE2 recently? (Not the no-hitter of the debt ceiling debate)
I mean really!
But by the same token, the end of QE II ONLY means the Fed has stopped buying all those bonds. It does NOT mean that all those asset swaps have somehow VANISHED from the PDs!
So does that mean all those banks STILL get to hold on to all of those warehouses that they bought to store all those commodities they recently bought?
Hey for you (bankster) fellas? How’s that price of oil doing for ya! Knock yourselves the you know what out fellas! Ain’t geetin’ no tears from me.
PS: News flash – BofA is bankrupt! Heard they were trying to sell off Countrywide. But the latest news is that they are truly belly up. Next week has many IEDs on the street. Watch France.
Where’s the “”correction”" of 2008 ?
I knew the markets were going to correct because the silver-gold ratio went down with the markets after the top in last May. But whereas the silver-gold ratio remained flat since last june the e.g. S&P 500 went up again and that had to end in tears. And it did.