We tend to pay more attention when the market drops than when it rises and it can make us nervous. Below are three charts that help to put market volatility, the ups and downs, into perspective.
This first chart shows how relatively common market declines are and notes the most recent occurrences:
Next we see a visual representation of the S&P 500 Index over the last 10 years. Note that the bulk of the activity ranges between -1% and +1%.
This last chart lists the 15 largest single day percentage losses in the S&P 500 since 1960 and the subsequent price performance of the Index for the next 1-, 3-, 5-, and 10-year periods.
Now, don’t you feel better? I do…