Mind the Backdrop

Matthew Allgood |

A black background with red text AI-generated content may be incorrect.

 

Market corrections happen for many reasons, but their depth often depends on the broader economic backdrop. Over the past 50 years, when the S&P 500 declined by at least 10% without a recession, losses averaged around 16%. However, when corrections occurred alongside a recession, the market typically fell nearly 40%. While it’s unclear how the current environment will unfold, history suggests that economic conditions can influence market outcomes. 

We remain focused on implementing our RiskFirst® Process, prioritizing disciplined risk management and navigating uncertainty to help you stay on track to reach your long-term financial goals.

Mind the Backdrop

A screenshot of a graph AI-generated content may be incorrect.

Source: Bloomberg, Redwood. Data as of 3/17/2025. Date Range from 1966 - 2025.

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.

5313 Anchorage Drive | Nashville, TN  37220| 331.229.3224 | matthew@allgoodfin.com | allgoodfin.com