Corrections feel unique in the moment. They never are.
Since 1980, the S&P 500 has experienced 14 corrections of 10% or more. In the twelve months following each trough, the index posted positive returns 93% of the time. The average recovery: +29.7%.
These are not marginal gains. They are substantial, and persistent. The only exception in four decades came in September 2001, when markets faced the compound shock of the 9/11 attacks and a recession already underway.
Yet in these pullbacks, one always faces fear and uncertainty which leads to panic selling. Yet the data argues with uncomfortable consistency those decisions made in periods of volatility are rarely the right decision.
What History Actually Shows…