Noting the
consistency of the stock market’s rise over the past couple of years, the
Bespoke Investment Group pointed out yesterday that the S&P 500 has now
gone 515 trading sessions without a drop of 10 percent. That’s nearly three
years’ worth of trading days.
That may sound like a long time to go without a correction,
but we’ve had a couple of longer periods in the recent future. From March 2003
to October 2007, the S&P 500 went 1,153 days without a 10 percent drop. And
from October 1990 to October 1997, the S&P went 1,767 days without such a
correction.
The fact that the market hasn’t taken a serious tumble in a
few years now has led some observers to opine that we’re due for a correction.
But on the other hand, if the current streak lasts as long as the 1990-97
streak did, we won’t see that 10 percent drop until October of 2018.
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