Yesterday was a little frightening as the Dow fell nearly 300 points, the largest one day loss since back in July. It's important to remember that even with all the recent turbulence, the S&P is only 3.5% off its highs. That's minor when we consider that many pullbacks and corrections are in the 5-10% range. It hasn't happened recently, but this bull market has seen some significant corrections during its five-plus year tenure. We can see these instances shaded in red in the S&P 500 chart below.
It's only the most recent leg of this bull market where we've had an absence of significant corrections. Looking at the chart above is one of the ways I calm myself when the market plunges and fear takes hold. That and rubbing my earlobes while saying "woosa."
In the chart above we can clearly see the last three bull markets and inside the green circle, we ... Log in or subscribe to continue reading.