Well, this is a sobering statistic

The above graph and related article was posted on the blog boingboing. Click here for a link to the actual story and support the site. They have some interesting postings.

This graph depicts the S&P's annual returns, plotted by the frequency of occurance in ranges such as 0-10%, 11-20%, etc. As one would expect, the majority of the years fall into the 0-10% range. There were only 5 years each that fell into the 41-50% and 51-60% bracket.

Now, for the sobering statistic, until 2008, there was only 1 year each in the -31 - 40% and -41-50% columns. There was only 1 year in history with a loss greater than 50%. 2008 is currently sitting at -39%. The graph below was created a week or so ago before the S&P had a recent run up of about 130 points. Regardless, we could be looking at a historical 1 year annual loss for the S&P.

Until Next Time,
- Steve