What Can We Learn From Past Stock Market Corrections?

Remember the last time stocks fell so hard? You probably don’t, and that’s making today’s market seem harsher than it is.It’s a fact of the life of the mind — things always seem worse in the present. In reality, they’re not. In this bull market alone there’s been five other corrections like this one, and it’s taken around seven months on average for equities to climb out of their hole. Based on that path, the current jitters won’t be fully eradicated until August.Just because bouts of losses are normal doesn’t mean they’re painless, especially when momentum stocks are leading the way lower. But the statistic is a reminder that it’s unrealistic to expect a market recovery to involve a straight line back up.

Source: The Lesson From Stock Corrections Past? 200 Days of Pain – Bloomberg

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