Today’s Chart of the Day was shared on Twitter by Ryan Detrick (@RyanDetrick). The chart shows the frequency of 2% drops in each year since 1950. The S&P 500 fell over 2% today for the first time since late August. Today’s price action certainly felt jarring, given the lack of volatility over the past few months. However, Ryan explains that 2% drops are fairly normal, “the S&P 500 averages more than five 2% drops per year.” Last year was a stellar year for stocks with the S&P 500 gaining nearly 30%, and even then, the index experienced five 2% drops. If history is any guide, this probably won’t be the last 2% drop we see in 2020.
Chart of the Day - Monday, February 24th, 2020
February 24, 2020
