Key Takeaways

• This chart shows the stock market’s performance (bars) and the largest intra-year decline (dots) each year.
• The average year sees a 13.5% drop in the stock market. However, most years still end in positive territory, averaging 9% gains.
• Volatility is a normal part of investing, and investors are often rewarded for staying disciplined through short-term volatility.

This chart shows the annual returns and largest intra-year decline for the S&P 500 price index. The largest intra-year decline is measured as the steepest peak-to-trough decline for the index during the calendar year.

Date Range: January 2, 1980 to present

Source: Clearnomics, Standard & Poor’s