(zt)Reflections on corrections

One Fidelity expert looks to past corrections for clues to today's opportunities.

Key takeaways

• Since 1960, there have only been 10 corrections in the US stock market as steep and fast as the pullback in February, which had a 10% decline in 9 trading days.
• Historically, stocks have generally performed well after such sharp corrections, with positive 12-month returns following 8 of the 10 corrections, and an average gain of 17%.
• Looking back to 1955, the market has had better odds of an advance when interest rates are rising rather than falling.
• Many corporations still seem relatively early in their profit cycle, which has been positive for cyclical sectors in the past

https://www.fidelity.com/viewpoints/market-and-economic-insights/market-corrections-history-investors