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Chart of the Day: 14% Downturns

blue and green bar chart

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Today’s Chart of the Day from OneDigital shows the return of the S&P 500 each calendar year since 1980 as well as the maximum drawdown during the year. They note, “Even though the average intra-year downturn was 14%, the index still ended the year positive more than 75% of the time with an average return of 11%.”

It's important to know that when the market is down, it can seem like an issue at the time, and someday it might turn out so, but 10-20% declines are generally normal, annual events. Remember what the great Warren Buffet said, "The stock market is a device for transferring money from the impatient to the patient.”