STOCK SHRINKAGE

Since 1930, a period of almost 100 years, the S&P 500 has historically declined by 5% about 3.3 times a year. The frequency of a 10% decline, or a correction, is 1.1 times a year, while the historic frequency of a 15% decline averages just once every other year. Lastly, the average incidence of a 20% fall, or a bear market, in the S&P 500 happens once every three years.