“Stock market corrections are a great time to buy.”
50 years of corrections, and the one number that stands out
Despite these concerns, taking a step back and examining how the stock market has responded to corrections over the past five decades should help worried investors calm their nerves.
From Yardeni Research via Motley Fool.
As you can see from the data, which comes from Yardeni Research, there have been 29 corrections over the past 50 years, working out to one around every two years, on average. But what stands out the most about this data is the duration of these corrections. There are six instances where a correction lasted longer than 500 days, as highlighted in red; two instances where they lasted between 157 and 288 days, as noted in yellow; and 21 instances where they’ve been 104 days or shorter, as shown in green.