It's A Mistake To Assume We're Due For A Stock Market Sell-Off

View this email online | Add newsletter@businessinsider.com to your address book

		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Monday, April 1, 2013 It's A Mistake To Assume We're Due For A Stock Market Sell-Off On Thursday, the S&P 500 closed at an all-time high. However, the most remarkable aspect of this achievement may be that it got there with very few notable pullbacks. "It’s been 90 trading days since the last 5%+ dip and 374 days since a correction," writes Deutsche Bank's David Bianco in a new note to clients. So, does this mean we're overdue for a sell-off? Not necessarily, says Bianco. "Dips of 5%+ are inevitable, but they don’t happen in absence of bad news or emerging risk," he writes. "Since 1960, the average number of trading days in-between 5%+ dips is 118 and in- between 10%+ corrections is 357 days. The [standard deviation] is 92 and 387 days, respectively. "Hence, pullbacks aren’t clockwork. Dips come on disappointment, which raises uncertainty that requires reassessment at the time – dips aren’t free. Only 3 years since 1960 without a 5%+ dip from 6mo high: 1964, 1993, & 1995." Here's a chart showing the longest periods between dips and corrections.  We're right around average now. Read » Also On Money Game Today: STOCKS FALL, APPLE DIVES, CORN GETS DESTROYED: Here's What You Need To Know ANALYST: All Of My Clients Think There's A Bitcoin Bubble, But A 'Perfect Storm' Is Causing Prices To Surge Advertisement CHART OF THE DAY: The Amount Of Cash Returned To Investors In Buybacks Is Too Large To Be Ignored CHART OF THE DAY: The S&P 500 Is Nowhere Near Its All-Time High... Priced In Gold CHART OF THE DAY: Corporate Cash Hoarding Is A Myth Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: ipat39@gmail.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

If you believe this has been sent to you in error, please safely unsubscribe.