Historically, the stock market has offered two certainties.
The first of those certainties is that the broad-based indexes will increase in value over time. In terms of wealth creation, the stock market has averaged a historic return of about 7%, inclusive of dividend reinvestment, and when adjusted for inflation. That means it’s left other investment tools, such as bonds, commodities, and bank CDs, eating its dust.
The other certainty is the inevitability of stock market corrections. Since 1950, the S&P 500 (INDEX: ^GSPC) has undergone 37 corrections of at least 10%, not including rounding. That’s one sizable drop in the stock market every 1.9 years, on average.
It’s only a matter of time before another stock market crash occurs -- and when one does, the following 10 events could be the culprit.
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