How often are stock market corrections?

caifanman

How often do stock markets correct? This table was taken from here which summarises the frequency of market corrections, and how much money to invest assuming a $1,000 initial capital.

Market falls by this much	Invest this much (%)	Historical frequency
10%	$100 (10%)	Every 11 months
15%	$220 (22%)	Every 24 months
20%	$300 (30%)	Every four years
30%	$130 (13%)	Every decade
40%	$125 (12.5%)	Every few decades
50%	$125 (12.5%)	2 – 3 times per century

Notice that the money invested (or %) doesn't increase with the percentage fall in the stock market. The idea behind the allocation is to capitalize on both severity and frequency of the crashes.