But have we seen this before in recent memory?
Since the beginning of 2010, there have been five occurrences where the market declined by 5% or more.
- May and June 2010: US stocks down almost 8% in May and 5.6% in June, for a total two month decline of 13.5%. In those months we saw the May 6 “flash crash”, European debt problems, worries about a slowdown in Asia, and a decline in U.S. consumer confidence.
- August 2010: US stocks down 4.5%, over continuing concerns about Europe, and a potential slowdown in the U.S.
- May 2011 through September 2011: US stocks down more than 18% over five month period due to debt ceiling crisis, a U.S. credit downgrade, continuing fears over the European debt problems and worries about a global slowdown.
- May 2012: US stocks down about 6% due to continued fears of a slowing U.S. economy, and jitters over the seemingly never ending European debt crisis.
- May – August 2015: US stocks decline 12% over concerns in China, Europe, emerging markets, and a possible economic slowdown.
Core Wealth Management is a fee-only wealth management firm located in Jupiter, FL. Our CFP® professionals provide investment management, financial planning and advisory services, while always strictly abiding by the highest fiduciary standards. For more information, contact us today at 561-491-0231.
Todd Schanel, CFP®, CPA, CFA, CVA is the Principal and Director of Investment Advisory Services at Core Wealth Management. He is a member of the CFA Society of South Florida.