{"id":231483,"date":"2010-01-26T07:40:00","date_gmt":"2010-01-26T12:40:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:386463"},"modified":"2010-01-26T07:40:00","modified_gmt":"2010-01-26T12:40:00","slug":"equity-pullbacks-part-of-every-recovery","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/231483","title":{"rendered":"Equity pullbacks part of every recovery"},"content":{"rendered":"<p>Despite Monday&#39;s 0.5% rebound, the S&amp;P 500 is still down 4.6% from<br \/>\nits January 19 cyclical high of 1,150. <\/p>\n<p>Investors need to remember that<br \/>\nequity pullbacks are part of every economic recovery. In fact, the<br \/>\naverage pullback 12 months after the end of a recession is 13%, or 8.8%<br \/>\nif 2001 is excluded, according to National Bank Financial.<\/p>\n<p>The 33.8% decline in 2001 is an unlikely scenario this time around<br \/>\nbecause the S&amp;P 500 was trading at 21 times forward earnings,<br \/>\naccording to economist <font size=\"2\">St\u00e9fane Marion. He noted that this is well above current valuations around 14 times.<\/font><font size=\"2\"><\/font><\/p>\n<p><font size=\"2\">&quot;As such, we would not expect to see a<br \/>\nlarger-than-average recovery pullback in the coming months,&quot; the economist told clients. &quot;The<br \/>\nimproving economic backdrop remains supportive of equities.&quot;<\/font><\/p>\n<p><a href=\"mailto:jratner@nationalpost.com\">Jonathan Ratner<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/np\/aggbug.aspx?PostID=386463\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite Monday&#39;s 0.5% rebound, the S&amp;P 500 is still down 4.6% from its January 19 cyclical high of 1,150. Investors need to remember that equity pullbacks are part of every economic recovery. In fact, the average pullback 12 months after the end of a recession is 13%, or 8.8% if 2001 is excluded, according to [&hellip;]<\/p>\n","protected":false},"author":4059,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-231483","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/231483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4059"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=231483"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/231483\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=231483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=231483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=231483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}