Strategists at Merrill Lynch note that the Dow Jones Industrial Average
has been on the decline for eight months within a 12-month period.
"Only 4.1% of previous episodes posted greater monthly declines (number
of months) within a 12-month period than the current episode," they
say. Prior years that saw declines more than the current correction
were 1907, 1910, 1917, 1920, 1930, 1948, 1966, 1974, 1978 and 2002.
Looking at a 24-month window, up until October, the Dow posted declines
in 10 out of 24 months. "In the past, approximately one-third of the
correction episodes were longer than the current one," the strategists
say.