In a previous post, I simulated S&P 500 drawdowns for a perspective on what the current market correction may dispense in the weeks and months ahead. Let's supplement that analysis by visually comparing the current and ongoing peak-to-market decline with the 10 deepest drawdowns since 1950.
History doesn't repeat, at least not exactly when it comes to stock market trends. But you can still learn a lot by studying the past, which is an imperfect but nonetheless useful guide for framing the future.
Here's how the 10 biggest drawdowns stack up against the current decline,