“The 15th S&P 500 correction of at least 10% since 1975 has shifted
client conversations to valuation support. The current correction is 12%
below the April high and modestly smaller than the 18% average of past
corrections. We see support in strong earnings and past valuation bottoms
but lower our 2011 year-end price target to 1400 and 2012 EPS estimate to $
102 due to slower global GDP estimates from our global Economists.
The current S&P 500 correction is the 15th such pullback since 1975. The
index stands 12% below the April 2011 high of 1364, so the drop is 620 bp
smaller than the median correction of the past 35 years. At 97 days, the
current episode is in-line with the average duration of past corrections.”
Read more: http://pragcap.com/goldman-puts-the-sell-off-in-perspective
