How Often Do Stocks Fall?
Courtesy of Michael Batnick
The S&P 500 fell nearly 6% today, leaving the index 11% below its all-time high.
You can see in the chart below that losses in the stock market range from mildly uncomfortable to absolutely excruciating with a mix of emotions in between.
Right now stocks are in what the newspaper calls “correction territory,” which means that they’re more than 10% below the highs. Historically, the market has been in this position roughly 1 in every 5 days.
Investing hurts. The market has only hit an all-time high on 7% of all days, which means that if you open your account on any given day, there is a 93% chance that you’re under water.
Investing is a game of endurance, with the biggest gains accruing to those that can most withstand the pain.