How often does a correction in the stock market turn into a full-blown recession?

January 23, 2009 · Filed Under Other - Business & Finance · 1 Comment 
Matt Humberto asked:


I’m interested in “leveraged indexes” (ex., SSO) that imitate the general movement of the stock market with increased power. However, if the market plummets, I’m twice as in trouble as I’d normally be.

I know that predicting the market is a difficult if not impossible task, but are there any early “warning signs” to warn me of an upcoming recession?

Historically, how many times have corrections (10% drop in the market) turned into a true, full-blown recession (20% drop or more in the market)?

Thanks for your help!

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How often does a correction in the stock market turn into a recession?

January 1, 2009 · Filed Under Investing · 4 Comments 
Matt Humberto asked:


I’m interested in “leveraged indexes” (ex., SSO) that imitate the general movement of the stock market with increased power. However, if the market plummets, I’m twice as in trouble as I’d normally be.

I know that predicting the market is a difficult if not impossible task, but are there any early “warning signs” to warn me of an upcoming recession?

Historically, how many times have corrections (10% drop in the market) turned into a true, full-blown recession (20% drop or more in the market)?

Thanks for your help!
Correction: By “recession” I meant a bear market. Sorry for the confusion of terms.

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