This Market Performance Indicator Hasn't Been Wrong in 70 Years: Here's Where It Says Stocks Are Headed
One of the toughest realizations newer investors will eventually make is that stock market corrections occur frequently. Since the beginning of 1950, there have been 39 separate double-digit percentage declines in the broad-based S&P 500 (SNPINDEX: ^GSPC), based on data provided by Yardeni Research. That's a double-digit decline, on average, every 1.87 years.
But Wall Street doesn't adhere to averages. Downdrafts can occur anytime and without warning. Last year, the S&P 500, iconic Dow Jones Industrial Average (DJINDICES: ^DJI), and growth-stock-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) all plunged into respective bear markets and produced their worst full-year returns in more than a decade.
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Source Fool.com
