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HSBC: A Look at History Shows World Markets Are Close to the Bottom

Time to go long?

"History suggests we are close to the bottom of this correction," asserts HSBC global equity strategist Ben Laidler, "and risk/reward to buying appears favorable."

In dissecting the duration of and damage from previous stock market declines, the strategist finds that this current one looks like it's close to its finale. Since 1988, the MSCI All Country World total return index has suffered a drop of more than 10 percent on 16 occasions, averaging a 20 percent decline over a span of 18 weeks., By comparison, this retreat has lasted for 14 weeks, during which time the index has given back 19 percent.