Here’s A Look At Each Year’s Big Stock Market Sell-Off Since 1980

So far, 2014 has been a volatile year for the stock market. The S&P 500 has gone from its all-time high of 1,850 on January 15 to a low of 1,737 on  Wednesday. This is a brutal 6.1% intra-year decline. For the year, the S&P 500 is no  down 5.2%. However, these big intra-year drops are very typical of the markets.

Check out this chart from JP Morgan Funds’ David Kelly. According to Kelly’s  research, the average annual intra-year drop since 1980 is a whopping  14.4%. This makes this year’s sell-off look minuscule. More importantly, annual returns during these years have been positive 26 out  of 34 times. Yes, the recent volatility hurts. But it’s no reason to freak out.

intrayear

Sourcehttp://www.businessinsider.com/historical-intra-year-stock-market-sell-offs-2014-2#ixzz2si2bJB3M

Disclosure: This communication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any securities or product, and does not constitute legal or tax advice. The information contained herein has been obtained from sources believed to be reliable but we do not guarantee accuracy or completeness. Do not act or rely upon the information and advice given in this publication without seeking the services of competent and professional investment, legal, tax, or accounting counsel.

LiveJournalLinkedInEmailFacebookTwitterShare

Comments

comments

Leave a Reply

WordPress Themes