Corrections

A -post collection

Equity market correction historical tidbits

A few interesting historical contexts of market corrections/bears….. The header graphic shows the extreme level of capitulation that the markets have expressed through this week. This shows the percentage of stocks above their 200 day moving average. It is nearly as low as the GFC bottom and below all others. There is nothing magic about the number, but when put into historical context shows how this market action compares to previous extremes. As of Tuesday Dec 26, the current market correction is the 5th fastest this century to a 20% correction, widely considered the threshold for a “Bear Market”. Higher speed corrections are generally correlated with meaningful but shorter duration bear markets, while slower drawdowns have generally been associated with more durable weak economic periods

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