#MARKETS & INVESTING
A 10% drop in the stock market is treated like a rare, alarming event. Since 1980, it has happened in nearly one year out of two.
Published on August 23, 2026
According to an analysis by Ryan Detrick (Carson Group) of the S&P 500 since 1980, a correction of at least 10% from a peak occurred in 24 of the past 46 years — nearly one year out of two. LPL Research, using the same public index data over the same period, reaches a similar frequency: a correction of 10% or more occurs on average roughly once every 1 to 2 years. These two analyses, conducted independently by two separate research firms on the same public S&P 500 data, converge on the same conclusion: a double-digit correction isn't a rare mishap, it's a recurring feature of the stock market.
Is a 10%-or-greater drop in the stock market a rare event?
Not according to the S&P 500's history since 1980: it has occurred in nearly one year out of two.
In other words: a 10% correction isn't the exception in the stock market, it's a near-annual occurrence over the long run.
Three caveats, because they matter
- The figure covers the S&P 500, a US index: correction frequency may differ on other markets or indices.
- A 10% correction says nothing about its duration or how far it goes afterward: some stopped there, others preceded a more severe bear market.
- A correction occurring in a given year doesn't stop that same year from ending in positive territory: the two aren't mutually exclusive.
Why it still matters: reacting to every 10% correction as an exceptional event ignores that market history makes it a near-annual occurrence, not a signal in itself.
For you
- Did your last reaction to a market drop account for this historical frequency?
- Does a recurring event deserve the same media treatment as a rare one?
Source: Ryan Detrick, Carson Group, analysis of the S&P 500 index since 1980; LPL Research, 'More Pullback Perspective,' analysis of the S&P 500 index.
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