Not exact matches
Since less volatile stocks tend not to
drop as much as their peers
during a market
correction, they don't need to climb as much to recover.
Since 1962, the average peak - to - trough S&P 500 Index decline
during these years was 19 %, although the past three midterm election years averaged closer to a 10 %
drop (the
correction in February 2018 was approximately 10 %).
If the market
drops 20 % I view that as a buying opportunity just as I did in 2008 - 2009 and
during each
correction since (most recently January 2016).
This point shouldn't be discounted — we are all human, and it's all - too - common for investors to panic when the value of their portfolio
drops during a market
correction.
Even a relatively large price decline, such as the 12 percent
drop we saw in Sarasota, Fla., can not reasonably be called a
correction when that market had a 150 percent price increase
during the boom.
Historically speaking, rent
drops during the biggest real estate
corrections held very steady in many markets.