"Market Corrections Ahead of the Presidential Inauguration."

Corrections are a part of the stock market, signaling moments of weakness and opportunity. Here's a breakdown of the current market decline levels, ranging from the recent 5% pullback to the potential 20% drop that defines a bear market. These are the levels that I will be watching to let me know the momentum of this current shorter term downtrend.

Historical Context:

Over the past 50 years:
5-10% declines occur about 3-4 times per year on average.
10-20% corrections happen roughly every 2-3 years.
Full bear markets (20%+ declines) are rarer but significant, averaging one every 6-8 years.

This chart visualizes the current levels, helping traders and investors understand where we stand in historical context and where the market could potentially head.

Always remember that as hard as some corrections and declines can be, they all create buying opportunities for long term investors.