--- title: This Simple Chart Shows When to Expect the Next Stock Market Correction description: Stock market corrections occur about once every 1.6 years and bear markets once every four years. authors: - name: Anna-Louise Jackson url: https://money.com/author/anna-louise-jackson/ at_money_since: 2021 articles: 29 covers: - Economy and Politics - Career Advice - Investing - Personal Finance - Taxes former_staff: true published: '2021-10-20T18:59:36.000Z' modified: '2022-08-22T18:47:31.000Z' section: Economy and Politics tags: - News - stocks word_count: 515 canonical: https://money.com/stock-market-correction-chart/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Man Holding Smart Phone While Staring At A Computer Screen Displaying Stock Market Graphics](https://img.money.com/2021/10/Investing-Next-Market-Correction.jpg) The S&P 500 has nearly doubled in value since the current bull market in March 2020. What it hasn’t done in those nearly 19 months, however, is a selloff of at least 10% — or what’s known as a market correction. In 29 of the past 50 years, the S&P 500 has experienced this type of market decline, and it just so happens that a correction of at least 10% has happened about once every 19 months, on average, going back to 1928. That means, in theory, that the market is due for a correction right about now. ![When To Expect The Next Correction Chart](https://img.money.com/2021/10/Investing-Next-Market-Correction-Chart.jpg) And yet, the S&P 500 is less than 1% below its most-recent all-time high from September, and has bounced back from a slump of as much as 5.2% earlier in the month. That’s a pretty small pullback, especially when compared with the 14.2% average decline that has happened during the year since 1980, notes Jeff Buchbinder, equity strategist with LPL Financial. “You could say these are pretty common events.” Investors who think a market correction is overdue might point to things like high stock prices, high inflation, slower economic growth, the lingering Covid-19 pandemic, the Federal Reserve’s plan to taper asset purchases, or even history as the likely cause. For Buchbinder and his colleagues at LPL Financial, there’s no reason to believe such a selloff is imminent. Rather, pullbacks are likely to be contained to a 5% to 8% range as investors quickly jump back in to buy stocks after any such decline, he says. “Obviously nobody has a crystal ball, but we think we’ll get through the year without a 10% correction,” Buchbinder says. “To get a 10% correction, you need something bad to happen and it needs to be a surprise — and we don’t see what that surprise might be.” ## Robo-advisors keep an eye on the market's every move to protect your investments. ### SoFi®️ Invest, a robo-advisor, will monitor the market closely so you can sit back and get the most out of your investments. Click on your state now for more information. [Get Started](https://money.com/pr/uf3d4f960a65?ap_referrer=%2Fstock-market-correction-chart%2F) ## Another year without a 10% correction? If the S&P 500 does indeed finish off 2021 without enduring a 10% correction, then this year will be in decent company. The prior bull market, from 2009 to 2020, had five years with no declines of at least this magnitude — and the index ended all of those years higher. Of course, things could change come 2022, Buchbinder notes. But for now, there’s another piece of history to take into consideration: A solid start to the year (with gains of at least 12.5% in the first three quarters) has typically boded well for the final quarter, with the S&P 500 rising another 3.9%, on average, during those final three months of the year, according to LPL figures. Eventually, the stock market will face another 10% correction but it’s important to remember that these declines are normal. And last year’s bear market decline of nearly 34% should serve as a pretty relevant reminder that the market can bounce back quickly, even from a shock. “Drawdowns are hard to avoid,” Buchbinder says. “Almost always, the best choice is to ride out those downturns.” ## With the help of a robo-adviser, you'll have more options to grow your investments. ### For a diversified portfolio with the risk tolerances you need and the monetary goals you want, a robo-adviser can be a powerful ally. [Start Now](https://money.com/pr/uf0ed7533782?ap_referrer=%2Fstock-market-correction-chart%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/stock-market-correction-chart/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Economy and Politics", "item": "https://money.com/economy-and-politics/" }, { "@type": "ListItem", "position": 3, "name": "Stock Market", "item": "https://money.com/stock-market/" }, { "@type": "ListItem", "position": 4, "name": "This Simple Chart Shows When to Expect the Next Stock Market Correction" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/stock-market-correction-chart/#webpage", "url": "https://money.com/stock-market-correction-chart/", "name": "This Simple Chart Shows When to Expect the Next Stock Market Correction", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2021-10-20T18:59:36.000Z", "mainEntity": { "@id": "https://money.com/stock-market-correction-chart/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/stock-market-correction-chart/#breadcrumb" }, "dateModified": "2022-08-22T18:47:31.000Z" }, { "@type": "NewsArticle", "headline": "This Simple Chart Shows When to Expect the Next Stock Market Correction", "articleSection": "Economy and Politics", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2021/10/Investing-Next-Market-Correction.jpg", "width": 2880, "height": 1920, "caption": "Investing-Next-Market-Correction" }, { "@type": "ImageObject", "url": "https://img.money.com/2021/10/Investing-Next-Market-Correction-Chart.jpg", "width": 800, "height": 263 } ], "author": [ { "@type": "Person", "name": "Anna-Louise Jackson", "url": "https://money.com/author/anna-louise-jackson/", "@id": "https://money.com/author/anna-louise-jackson/#author" } ], "publisher": "https://money.com/#organization", "datePublished": "2021-10-20T18:59:36.000Z", "description": "Stock market corrections occur about once every 1.6 years and bear markets once every four years.", "abstract": "Stock market corrections occur about once every 1.6 years and bear markets once every four years.", "@id": "https://money.com/stock-market-correction-chart/", "inLanguage": "en-US", "dateModified": "2022-08-22T18:47:31.000Z", "wordCount": 515, "keywords": [ "News", "stocks" ], "about": [ { "@type": "Thing", "name": "Political economy", "sameAs": [ "https://en.wikipedia.org/wiki/Political_economy" ] }, { "@type": "Thing", "name": "Stock market", "sameAs": [ "https://en.wikipedia.org/wiki/Stock_market" ] }, { "@type": "Thing", "name": "Economy", "sameAs": [ "https://en.wikipedia.org/wiki/Economy" ] } ] } ] } ```