S&P 500 Facing a Historical Warning Sign After This Year's Slump
- Consecutive years of declines in US stock benchmark are rare
- When they do occur, second year has been worse than the first
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Consecutive down years are rare for US stocks, so after this year’s drop, there’s only a low probability they will decline again in 2023. Yet if they do, history shows that investors will have to brace for another very unpleasant 12 months.
Since 1928, the S&P 500 Index has only fallen for two straight years on four occasions: The Great Depression, World War II, the 1970s oil crisis and the bursting of the dot-com bubble at the start of this century.