Pullbacks Galore

November, 2018

Nobody knows why the S&P 500 index declined more than 11% in October; the largest decline since, well, earlier this year.   

But experienced investors know that these declines are not unusual.  Since March 2009, the U.S. stock market has seen 23 pullbacks greater than 5%; eight greater than 10%.  You can see all of them on the accompanying chart; on average, these pullbacks have lasted 42 days and dropped prices by 9.3%.  And this is during a very long bull market! 

Interestingly, the S&P 500 today isn’t the same as it was back when the current bull market began; in fact, there are only 337 stocks remaining in the index that were included on March 9, 2009.  A small number—just 38 of them—accounted for much of the runup in the index, each gaining more than 1,000%. Most of the big gainers were technology stocks.   

Is there a lesson here?  Alas, we can’t extrapolate the short-term future from these statistics.  When stocks go on sale, it is often difficult to determine whether they will become even better bargains in the days ahead. 


Edward J. Kohlhepp, Jr., CFP®, MBA

Edward J. Kohlhepp, CFP®, ChFC, CLU, CPC, MSPA

Founder & CEO




This material was prepared by BobVeres.com., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.


Prosperity - Not for All
Stocks Go On Sale Again

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Kohlhepp Investment Advisors, Ltd.
3655 Route 202, Suite 100
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