5 Stock Corrections Show More Pain Ahead
By Mark Kolakowski | March 29, 2018
Since reaching a record high on January 26, the S&P 500 Index (SPX) has given investors a bumpy ride, mostly to the downside. First there was a 10.2% correction lasting through February 8. Since then, after various ups and downs, the index closed March 28 at 9.3% below that January 26 high water mark. What next? If recent history is a guide, stocks have a longer downward ride ahead. The average correction since 2009 has sent the index down by 14% to its trough, and almost 200 days elapsed before the previous high was regained, Bloomberg reports. While the recent decline in stock prices may be disconcerting to some investors, it is still not a bear market, which requires a drop of at least 20%.