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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 | 6 Comments
Click for larger chart
Source: JPM Guide to the Markets  (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.
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:
 Image: http://www.ritholtz.com/blog/wp-content/uploads/2013/12/Intrayear.png
 JPM Guide to the Markets: https://www.jpmorganfunds.com/cm/Satellite?UserFriendlyURL=diguidetomarkets&pagename=jpmfVanityWrapper
 Continues here: http://www.bloomberg.com/news/2013-12-11/examining-intra-year-pullbacks-ritholtz-chart-.html
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