As further proof that the market does not move higher in a straight line, the CFRA report notes the S&P 500 Index incurred a year-to-date price decline in 83% of all up years since 1945.
- "during bull markets since 1945, the S&P 500 experienced a pullback (a decline of 5.0%-9.9%) once a year, on average,"
- "a correction (a 10% to 19.9% decline) every 2.8 years, and,"
- "a bear market (-20%+) every 4.7 years."
- "the S&P 500 suffered a YTD price decline in more than 80% of all years in which the S&P 500 recorded a positive annual performance since WWII."
By: Sam Stovall, Chief Investment Strategist
January 17, 2017