How Often Do Markets Decline?

Depending on how old you are, you may have only experienced a time when the stock market went up.  For people that may have started investing in 2010 or afterward, this week might be very scary.

However…market sell-offs like this one are a very healthy and necessary part of the stock market.

Since 1900, the Dow Jones Industrial Average has fallen 5% or more at least three times per year.  It falls 10% or more approximately once every year.  It declines 15% every two years, and a 20% decline happens every three and a half years.  The average duration of each decline is less than a year.

Overall the market rises three out of every four years.

This is why you have to stay invested and not try to time the market.

Have a good weekend!  If you haven’t yet, please pick up a copy of my book, The Stock Market is For Everyone.  It’s a short read that will provide beginners to the stock market with all the information needed to get started investing.  If you know someone who isn’t invested yet, pick up a copy for that person!  With stock prices lower, now is a great time to pick up those first shares.


My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click the image of the book at left to be taken to its Amazon page.  (Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)



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