Market Corrections

I noted on January 17th while discussing the market's valuation that probability would indicate we could see a market correction between 10-20% this year.  I noted in that post that it's been a long time since we've seen something like this.  The folks over at Business Insider via Andrew Lapthorne over at Société Générale quantified how long it's actually been in world by noting that, "it's been 408 days since the last 10% correction in the MSCI World index, the 8th-longest period on record."

Markets can obviously go for long periods of time without correcting and there's no law that says we'll see one anytime soon.  The real question may be whether when a pause or correction finally comes will it be one of price, time or a combination thereof.  Eventually stock prices are going to pause for something longer than a few days or weeks.   It's best to accept that fact and be prepared for it when it occurs.  Right now based on what we know of the economy, I'd be in the camp that any correction would be a buying point.  That opinion could of course change over time.  

Link:  Business Insider.com:  The Stock Market Hasn't Had a 10% Correction in 408 Days.

*Long ETFs related to various world market indices in client and personal accounts.