Having just done this exercise for the US market I thought I would repeat it for the All Ords.
There are a few things that stand out out.
- 1987 was a major pullback the likes of which have not been replicated, not even by the GFC.
- The local market is prone to periods of pullback – this does seem to be somewhat of a default state.
- Pullbacks of up to 5% seem from this data to be reasonably common.
- Comparing this to a price chart you can see that the market is reasonably resilient but it is not a star performer.
- Compared to the US markets since the GFC we have been rubbish.
The point to reinforce is that despite talks of a bloodbath and other hysterical nonsense the movements of this week have not been that unusual and are from an historical perspective not rare at all.