investing.com - Now that the U.S. stock market has entered correction territory, investors might be asking what's next.
The good news is that cirrections don't last that long.
This bull market has had four previous corrections, meaning a price decline of at least 10%. They lasted an average of three months.
The historical average of the three dozen corrections since 1950 is about four months.
The second piece of good news is that once a correction is over, it generally takes about four months for stock prices to recover their loss.
Every now and then, however, a correction can drag on or come close to turning into a bear market.
The correction of 2015 lasted 11 months, while the correction of 2011 registered a 19% decline, just shy of the 20% threshold for a bear market.
This correction has been swift, driven by two 4% selloffs over the past two weeks, which has made investors particularly nervous.
Investment advisors are quick to counsel that corrections are common, natural occurrences for stock markets, and that investors who have taken advantage of these so-called buying opportunities have often been rewarded for their courage.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.