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The stock market is officially in a correction… here’s what usually happens next

The S&P 500 hew down officially into correction territory on Thursday, down more than 10 percent from its gramophone record reached in January.

If this is just a run-of-the-mill correction, then we are looking at another four months of dolour, history shows. If the losses deepen into a bear market (down 20 percent), then it could be 22 months ahead of we revisit these highs, history shows.

“The average bull market ‘corrigendum’ is 13 percent over four months and takes just four months to win,” Goldman Sachs Chief Global Equity Strategist Peter Oppenheimer put in a Jan. 29 report.

Source: Goldman Sachs

But the pain lasts scarcely two years on average if the S&P falls at least 20 percent from its unofficially high — past 2,298 — into bear market territory, the make public said. The average decline in a bear market is 30 percent, according to Goldman.

The after week of stock market drops has taken the S&P 500 into emendation territory for the first time in two years

Stocks remain in an upward bull trade in trend, the second longest in history.

S&P 500 corrections and bear deal ins since WWI

Source: Goldman Sachs

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