Chris Haverland, CFA®
by
Global Asset Allocation Strategist

Key takeaways

  • On average, U.S. stock-market corrections occur every 11 months.  Historically, they have not turned into bear markets a majority of the time.
  • During the latest correction, all asset classes were lower, but some declined by less than others. A hypothetical diversified portfolio outperformed equities and captured only a portion of the downside during the correction.

What it may mean for investors

  • Fundamentals remain unchanged, while equity valuations have become more compelling (cheaper). We believe that investors should be prepared to deploy excess cash as opportunities present themselves.

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