Tuesday, January 28, 2020 4:01:35 PM
Market crashes or corrections are not the norm, but rather an exception. They rarely happen.
"Corrections" are "down 10% or more". The chart I posted earlier was UK, grabbing Robert Shiller's US data since 1871 ...
max down (monthly granularity) was 77%
In 'correction' for 42.6% of time is quite high - more like "quite often".
"Crashes" are "down 20% or more" and have occurred 27% of the time, more like "relatively often"
I am using total (including dividends) and real (after inflation) figures - as that's the better comparison/figures to be using IMO. Nominal and price only values would tend to indicate less correction/crash frequencies.
Clive
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