The first eight months of 2017 have seen global markets continue to go up at a surprisingly consistent rate. However, most investors, particularly those in growth or high growth investments, will be aware that equity markets rarely experience such blissful performance without some form of volatility. This has led many commentators to opine that markets are at record levels and therefore they are primed for a significant sell off. While in growing markets, corrections happen from time to time, they are healthy part of market cycles, and history suggests that record highs are not as uncommon as many investors think.
The below chart counts every trading day since the 1950’s for the United States S&P 500 share market index, which is over 15,000 trading days, measuring how far shares are from the latest market peak. What the chart shows is that over 40% of the time markets are within 5% of the market peak. As markets rise over time, on average more than one in twenty days is a new record high! Click here to read more.
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