The recent volatility in the global financial markets has been quite scary.
But when you step back, you’ll notice that the S&P 500 is only down by around 5% from their highs of the year.
In a new note to clients, Goldman Sachs’s David Kostin includes this chart of S&P 500 maximum drawdowns since 2010. These are the biggest stock market moves from their highs to their lows for each year.
As you can see, we’ve witnessed double-digit maximum drawdowns in 2010, 2011, and 2012.
So if this year is like the previous three years, then we have further down to go.
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