Here’s some pretty good historical data via Raymond James and Market Montage on the odds of a deeper market decline:
“Some interesting data from Jeff Saut of Raymond James if you are a data hound like I am.
Since 1928 there have been 294 pullbacks of at least 5%. Ninety four of them have been moderate (>10%), 43 have been severe (>15%) and 25 have been bear markets (>20%).
So in a statistical sense once you hit the 5% threshold your chances of a 10%, 15%, and 20%+ drop are as follows:
10%: 32.0%
15%: 14.6%
20%+: 8.5%”
Normally I’d say it’s unwise to data mine market facts like this and extrapolate out, but 294 data points is pretty broad as far as these kinds of statistics go…..
![Cullen Roche](https://pragcap.com/wp-content/uploads/2022/01/Headshot2022-1-144x144.png)
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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