As we have seen in previous stock market corrections, investors sell fearing the market will keep going lower and lower. Yes, the market will decline but history shows that it does rebound. Although we like to think we can predict the future, we can't. We can, however, use history as a benchmark to assess the recovery time.
Recently, The Capital Group looked back at S&P 500 market declines from 1949-2018. With their study, they were able to conclude that we experience a 10% decline on average once a year. Similar to what we are currently experiencing with the most recent sell off. On average, the market was able to rebound and recover those losses in 114 days.
In our Valentine's Day Blog, we discussed our proprietary investment process and how we incorporate a clients risk tolerance. We are happy to help answer your questions. You can send us a message on or by visiting our website!