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10% Market Declines: More Common Than You Think

Last week, the S&P 500 marked its first 10% decline in nearly two years. While such a decline may be unnerving, it’s more common than you think.

In fact, two years is an unusually long period for markets to go without a 10% decline. Capital Group reports that since 1900, the stock market has declined 10% every 11 months on average.

In more recent decades, 10% declines have been a common occurrence even as stocks have delivered solid returns. Since 1980, stocks have returned more than 10% on average while experiencing a nearly 14% decline in the typical year.

Long-term investors should take these declines in stride, knowing that short-term volatility will always be a fact of life in financial markets.

Source: Hefren-Tillotson, Bloomberg; Data as of 12/31/2017. Ignores fees, taxes and other costs of investing. PAST PERFORMANCE DOES NOT PREDICT FUTURE RESULTS

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.
Investment Advisory Team
Hefren-Tillotson

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Hefren-Tillotson Inc. is a leading diversified financial services firm providing investment and retirement plan management and comprehensive, financial planning through MASTERPLAN® for individuals and businesses. The firm’s wealth management services are administered by Certified Financial Planner (CFP) professionals, Chartered Financial Analyst (CFA) Charter holders, attorneys, Chartered Life Underwriters, and CPA/PFS’s. Hefren-Tillotson offers corporate services including 401(k) retirement planning, executive financial counseling, fiduciary reviews and workplace financial planning seminars. Founded in 1948, the firm is headquartered in Pittsburgh and has offices located in Pittsburgh, Butler, Greensburg, North Hills, and South Hills.