November 4, 2014

Stock Market Volatility

S&P 500 Losses of 10% or More Since 1950
Total Occurrences: 28 Times
Average Loss: -21.6%
Median Loss: -16.5%
Average Length: 7.8 Months
Greater Than 20% Loss: 9 Times
Greater Than 30% Loss: 5 Times
If your portfolio is heavily invested in stocks you need to be ready for the wild ride. If you can't stomach such a loss (remember, it's only on paper unless you panic and sell), it's time to re-set your asset allocation to a more conservative mix.
Thanks to Lon Jefferies for the S&P data "The next market correction? Remember the ace up your sleeve."

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