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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: tecmo   😊 😞
Number: of 285 
Subject: Correction Check In
Date: 11/03/25 5:02 PM
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No. of Recommendations: 8
From time to time I like to review what a deep correction would look like, here are some numbers.

S&P-500 is currently at 6833, a 20% hair-cut would take it to 5460 or so. As point of reference the market closed 2021 at 4740, so that would take the 4 year CAGR down to 3.6% - which I think sounds "about right"

tecmo
...



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Author: tecmo   😊 😞
Number: of 285 
Subject: Re: Correction Check In
Date: 11/03/25 5:03 PM
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excluding dividends... which would add about 2%

tecmo
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Author: tecmo   😊 😞
Number: of 19827 
Subject: Re: Correction Check In
Date: 11/04/25 10:17 AM
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Another scenario

Index drops 10% and then is flat for 2 years (through 2027).

Current : 6833
Correction : 6149

6 Year CAGR : 4.43% (plus say 2% for dividends) = 6.5%

This would bring long term equity returns in line with historical averages...


tecmo
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