Fidelity Data Shows S&P 500 Drops 10% in Half of Years

Fidelity Investments reports that the S&P 500 has experienced a decline of 10% or more in 48% of calendar years since 1980. Despite these frequent corrections, the index maintained an average annual return of 13.3% over the same period.

Financial analysis indicates that investors who maintain or increase periodic investments during market pullbacks typically achieve higher long-term returns than those who sell positions or pause contributions. By purchasing shares at discounted prices, investors can generate positive returns once the market recovers to previous highs. In contrast, investors who simply hold existing positions without making new contributions see only a neutral return during a full recovery cycle.