06/24/2026
📉 What Would a Market Pullback Actually Look Like?
Investors often talk about market declines as if they happen all at once. In reality, corrections tend to occur in stages.
Using VOO (Vanguard S&P 500 ETF) as a proxy for the S&P 500, this chart shows approximately where the market would be if it declined:
• 5% from recent highs: around 663
• 10% from recent highs: around 629
• 15% from recent highs: around 595
• 20% from recent highs: around 558
For perspective, a 10% decline is generally considered a market correction, while a 20% decline is commonly referred to as a bear market.
Market pullbacks are a normal part of investing. Historically, corrections have occurred regularly, even during long-term bull markets. While no one enjoys seeing account values decline, periods of volatility are often the price investors pay for the opportunity to participate in long-term market growth.
The challenge is rarely predicting when a correction will happen. The challenge is maintaining a disciplined investment strategy when it does.
This post is for educational and informational purposes only and is not a recommendation to buy or sell any security. Investors should consult with a qualified financial professional regarding their individual circumstances before making investment decisions.
