The market turmoil that began in early 2018 intensified later in the year, as the S&P 500 Composite Index declined nearly 20% between its September peak and late December. This slide put U.S. equities firmly in correction territory — typically defined as a 10% decline from a recent high — and has raised questions about whether this could be the start of a much bigger decline.
But how often do market corrections turn into entrenched bear markets? Not very often. In fact, a review of the U.S. equity market shows that there have already been six market corrections since the current bull market started in 2009.