The S&P 500 has gone more than two years without a 10% correction. This is a long time.
But a market going this long without a 10% pullback isn’t unprecedented.
In its latest chart book giving an overview of the world economy, Deutsche Bank notes that while the 563-day streak the S&P 500 has gone without a 10% correction is longer than average, “it’s fairly typical of an up-cycle outside of recessions.”
DB adds that 10% corrections, which many people have expected, usually cluster near recessions and crises, not the middle of a positive economic cycle.
It’s been a long time since a 10% correction, and we may be waiting for a while longer until the next one.