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S&P 500 Intra-year Declines vs. Calendar Year Returns

Posted By Barry Ritholtz On December 11, 2013 @ 12:00 pm In Markets,Trading | Comments Disabled

Click for larger chart
Intrayear [1]
Source: JPM Guide to the Markets [2] (updated by me)

 

For today’s chart, I wanted to look at something unusual: the intra-year pullbacks of the past few decades.

As this chart (via JPMorgan Chase & Co.) shows, there is an average market drawdown of 14.7 percent. That period includes a few whopper years. Even if we were to back out the outliers — remove the five biggest drawdowns (34 percent, 30 percent, 34 percent, 49 percent and 28 percent — average drawdown of 35 percent within the year), we still see an 11.5 percent average intra-year drop.

 Continues here [3]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/12/intra-year-declines/

URLs in this post:

[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/12/Intrayear.png

[2] JPM Guide to the Markets: https://www.jpmorganfunds.com/cm/Satellite?UserFriendlyURL=diguidetomarkets&pagename=jpmfVanityWrapper

[3] Continues here: http://www.bloomberg.com/news/2013-12-11/examining-intra-year-pullbacks-ritholtz-chart-.html

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