How often is the S&P 500 in a drawdown?

September 12, 2025

Share

• S&P500 Drawdown Frequency: The chart shows how often the S&P 500 has been in drawdowns of varying sizes since 1950, measured from prior all-time highs. It highlights that periods of pullback are a normal part of market history.


• A Look at the Data: The S&P 500 has spent more than 60% of the time at a 3% drawdown or greater, and over half the time at a 5% drawdown or greater. Even deeper declines, such as 10% or more, have occurred a meaningful share of the time.


• Investment Implications: These historical drawdown frequencies provide context for market volatility. This shows that declines are common and often temporary within long-term investing.

< Older Post

Recent Posts

S&P 500 Performance Following Rate Cuts

September 2, 2025
• What Do Rate Cuts Mean For The Stock Market? The chart shows S&P 500 performance in the 12 months following the start of Fed rate cutting cycles since 1957. While individual outcomes differ by cycle, rate cuts have historically coincided with near double-digit 12 month forward returns, on average. • A Look at the Data: Across all cycles, the average 12-month return following the first rate cut has been +9.7%. Results range widely, with some periods delivering strong gains and others showing declines. • Investment Implications: History suggests that rate cuts do not guarantee higher returns, but they have often been followed by positive market performance on average.