Analysts called the average time of market correction over the past 70 years

NASDAQ NASDAQ 13,893.84 +2,05% DOW JONES DJIA 34 754,93+0,8% RTS Index RTSI 919,97 +25.79%79%79%

Analyst firm Yardeni Research has published data on all corrections in the S&P 500 index for the period from January 1, 1950 to December 31, 2021. it is reported by The Motley Fool.

According to the study, the average period for the stock market to bottom during a correction   takes about 188.6 days (about six months). According to experts, the rapid computerization and democratization of processes in recent years have reduced this period to 74.3 calendar days (about 2.5 months).

Another study by Crestmont Research found that over 103 years of observation, from 1919 to 2021, the S&P 500 posted an average annual return of between 10.8% and 17.1% (including dividends   ). But the researchers emphasized that in order to achieve these indicators, it was necessary to own papers for at least 20 years.

Find out about the possibilities of our Catalog in the RBC Investments TELEGRAM channel

A change in the rate of stocks or currencies in the direction opposite to the main trend of market prices. For example, the growth of quotations after a weekly decline in the price of a share. The correction is caused by the execution of stop orders, after which the movement of quotes resumes according to the main market trend. Dividends are the portion of profits or free cash flow (FCF) that a company pays out to shareholders. The payout amount depends on the dividend policy. Their periodicity is also spelled out there - once a year, every half year or quarter. There are companies that do not pay dividends, but direct profits to business development or simply do not have the opportunity due to poor results. Stocks of dividend companies are most often of interest to investors who want to achieve financial independence or secure a decent standard of living in retirement. With the help of dividends, they create a source of passive income for themselves. More