Healthy correction?
After climbing 17% year to date through late October, the S&P 500 declined 5% through November 20. We believe the market was due for a healthy correction. While further downside is possible, it would not concern us.
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Published on 25 November 2025
After reaching a new all-time high on October 28, the S&P 500 declined 5% through November 20, leading to concerns of a renewed correction. We believe the market was due for a healthy correction and while further volatility may persist, additional downside would not concern us.
History shows that markets don’t move in a straight line, and drawdowns are normal. Since 1946, the S&P 500 has experienced a median annual correction of 11%.
Additionally, we do not believe we’re heading for a bear market or imminent recession, and we see the latest decline as more technically driven rather than a change in fundamentals or a more negative outlook. In 2026, we expect economic growth near 2% and earnings growth to continue to broaden beyond the tech sector, which should support equity performance. Therefore, staying invested and weathering the downside is critical for capturing potential upside.
845652 Exp : 25 November 2026
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