US Stocks: Today Would Only Be The 4th 2% Decline In The Past Six Months by Eric Bush, CFA, Gavakal Capital Blog
There is no doubt that a large gap down on the open adds to emotion in the market. But we wanted to point out that for MSCI USA stocks today would only be the fourth day with a decline over 2% in the past six months. To put this in context, we had 19 days with 2% declines in 2011 and 40 days in 2009.
If we take a quick tour of the developed world, we see that today would only be the third 2% decline for the MSCI World Index in the past six months. Again, in 2011 this series hit 12 days and in 2008 it hit 32 days.
In Europe, today will be the 5th 2% decline in the past six months and in Asia, it will be the 4th 2% decline in a day. We had 18 such days in 2011 and 40 such days in 2009 in Europe. In Asia, we had 9 such days in 2011 and 2013 and 32 such days in 2009.