Analyzing The Market Correction
The Standard & Poor's 500 index fell into correction territory Friday — dropping more than 10% since hitting its all-time high — and closed the week at 2,658.69.
The total return on the S&P 500 in the third quarter of 2018 was a strong 7.7%, but volatility since lopped off 9% of its value from its all-time closing high.
Share prices had hit a closing peak on September 20 of 2930.75 before tumbling to a 2629.18 low on Friday morning, meeting the definition of a market correction. Market corrections of 10% or even 15% on swings in investor sentiment are not uncommon events in long-term bull market periods historically accompanying economic expansions. Bear market drops of 20% are much less common and most bear markets coincide with economic recessions. No evidence of a recession was on the horizon Friday.
- Poverty Rate Dropped Again In 2019; A Sign Of Progress
- Stocks Dropped Last Week But Data Confirmed Economic Recovery
- Amid A Mixed Week For Stocks, A Strong Recommendation
- Is A Stock Bubble Bursting?
- S&P 500 Breaks Record For A Second Week
- S&P 500 Breaks New Record; Small Business Picture Is Different
- As If Coronavirus Never Hit, Retail Recovers
- Confirming Recovery Is Under Way
- Despite Grim Headlines, Stocks Rose Sharply -- Why?
- The Paradigm Shift In Valuing Stocks
- Retail Sales And Housing Starts In June Reveal Recovery's Shape
- Keeping Perspective In An Unreal Environment
- Economic Fundamentals Recovering As Stocks Surged For the Week
- Stocks Swing Wildly As Economic Recovery Begins
- Dog Days Of Summer In The Economy
- V-Shaped But Full Recovery Is Long Off
- Covid-19 Causes A Good Surprise
- The Epidemic Sets The Economy Back About Two Years
- Is This A New Bull Market?
- The Pandemic And Stocks
- Despite Disastrous Jobs Report, Stocks Surged 1.6% Friday
- Amid The Crisis In The Economy, Two Good Anomalies
- Financial Economics With The Epidemic's End In Sight
- The Beginning Of The End?