From Yahoo Finance: 2025-03-23 08:08:00

The S&P 500 is out of correction territory after falling 10.1% from its all-time high, now down 7.8% at 5,668. However, historical data shows 15 bear markets with an average 38% decline. Corporate profit margins have soared to 9%, above the historical 3.8%-7.2% range, signaling a potential stock market collapse.

A reversion to the mean profit margin of 7.2% could result in a 20% drop in corporate profits, impacting stock prices. This phenomenon could lead to a significant market decline, as investors reevaluate their willingness to pay for earnings. A historical example illustrates the potential impact of shrinking profit margins on stock prices.

Despite 15 market crashes in 100 years, the S&P 500 has averaged 10-11% annual growth, offering hope for long-term investors. To prepare, focus on undervalued stocks, avoid leverage and risky assets. While a crash may be imminent, history suggests growth will resume, emphasizing the importance of staying invested in the right stocks.



Read more at Yahoo Finance: The U.S. Stock Market Crashed 15 Times in the Last 100 Years. History Tells Us It’s Going to Crash Again — But Hold Fast.