Peter Mallouk: Peter Lynch says market typically sees 10% drops every two years

Peter Mallouk: Peter Lynch says market typically sees 10% drops every two years
Peter Lynch on frequency of market declines

Peter Lynch said that the market typically experiences a 10% decline about once every two years, and a 25% drop every six years. He added that people should be prepared for these downturns, suggesting that those who are not ready for such declines should not own stocks.

Peter Mallouk shared this perspective in a recent post.

Mallouk has previously pointed to continued gains for the S&P 500 in 2026, citing strong earnings growth despite global challenges in a recent post here. He also highlighted that the S&P 500 has reached 1,334 all-time highs since 1957, averaging a new record every 19 days according to earlier data. These comments provide further context to his views on market downturns and long-term equity performance.

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