The H Group Blog

Investment and Financial Planning news from some of the best in the business.

Corrections Are Just a Part of This Bull Market

Corrections Are Just a Part of This Bull Market

Ron Kelemen - Monday, March 20, 2017

As the current bull market enters its ninth year, it's time to recall that bull markets never go in a straight upward trajectory.  Pullbacks of 5% or more and corrections of 10% or more are quite normal.  But just how normal are they? 

Pulling the daily S&P 500 pricing data from March 9, 2009 to March 8, 2017 we came up with the following statistics about the bull market over the past eight years. 

Pullbacks and Corrections
March 9, 2009 to March 10, 2017




Average per year

Total Number of days

Average days of length



Pullbacks of 5-10%*






Corrections of 10% or more











* Excludes pullbacks less than 5%.  Percentages are rounded to nearest whole number.  Data source:  Yahoo Finance

Factoring in the pullbacks that are less than 5%, this bull market spent two of the last eight years in declines!  While most other bull markets haven’t been as long as this one, they have also had their share of pullbacks and corrections along the way.  The lesson here is that pullbacks and corrections are normal. 

To put this into perspective, what would a pullback or correction look like at with the Dow index at 21,000?  A 5% pullback would be a drop of 1,050 points.  A correction of 10% would see a decline of 2,100 points.  An actual bear market with a decline of 20% or more could see the Dow fall 4,200 points to 16,800.  While we can't predict how long this current bull market will continue, we also can't predict how long and when corrections will occur.  The one thing we know for certain is that that bull markets, corrections, and bear markets don't last forever.  

Trackback Link
Post has no trackbacks.

Recent Posts


JOLT Inflation Quarterly Reports Dow Jones Retail Sales Money Market Hourly Earnings Politics Building Permits Financial Markets Risk Management The Budget Deficit Weekly Review In the News Account Balance Interest Rates Unit Labor Costs NAHB Capacity Utilization PPI Chicago PMI Unemployment Rate Continuing Claims Helpful Hints Trade Balance MBA Mortgage Index The Eurozone Retirement Planning Social Security General ADP Employment Philly Fed Taxes Equity Medicare Industrial Production Jobless Claims Consumer Price Index Fiduciary Rule Elections Economic Indicators Business Inventories Average Earnings Nonfarm productivity Fiscal Cliff Nonfarm payroll Construction Spending FHFA Question of the Week Payrolls Housing Starts NASDAQ Global Markets Government regulation Home Sales Factory Orders Spending The Stock Market FOMC Education Planning NFIB Conference Board IPO Trade Deficit Wholesale Inventories Euro Consumer Sentiment Insurance Tax Inversion Portfolio Management Home Price Currencies Gold Estate Planning Goods Trade Balance Average Workweek Labor Costs Fun Personal consumption expenditures Our Team Members Income Durable Goods The Fed International Monetary Fund Health Insurance The Economy Millennials Consumer Confidence The National Debt University of Michigan GDP Weekly Hours Empire State Manufacturing Vehicle Sales Employment Europe Weather, Gas Prices Obamacare Fed Note Debt Financial Planning Producer Price Index Bitcoins Import Prices Brexit ISM Case-Shiller Year In Review Quarterly Updates Fed Beige Book Economy Bonds Investment Planning Scotland