According to BlockBeats, the U.S. stock market has entered a correction phase within just 16 trading days. Data from CFRA indicates that historically, it takes an average of eight months for the market to recover to previous record highs after a decline of at least 10% from such peaks, without entering a bear market. This suggests that the high point from February 19 might persist until mid-October. On average, these corrections see a 14% drop, though each correction is unique and there is no guarantee that this one will not extend into a bear market.
Ramsey, Chief Investment Officer at The Leuthold Group LLC, suggests that even if there is a short-term rebound, the market's challenges may just be beginning. He notes that wealthier Americans might reduce spending, which could hinder economic growth due to the sharp market decline.
Ross Mayfield, a strategist at Baird Private Wealth Management, emphasizes that the duration and depth of any sell-off are closely linked to whether an economic downturn or recession is imminent. He adds that if economic weakness is contained or if the federal government and Federal Reserve implement measures to prevent a market freefall, a 10-15% sell-off could quickly recover.
