Is the Recent Market Decline Concerning?

Between April 2nd and June 1st, the S&P 500 declined 9.58% (8.84% of which occurred in May). Is this concerning?

• Between 1900 and 2010, the market has experienced a correction of 5% an average of three times per year.
• Over the same period, on average, the market declined 10% once per year.
• Finally, since 1900, the market has endured a correction of 20% every 3.5 years.

Despite these corrections, the market has risen by approximately 10% per year over this time span. Market dips are a common element of investing. The best approach is to develop an investment plan and stick to it.

Source: Captial Research and Management Company