The Pakistan Stock Exchange has fallen from 190,000 to 174,000 in roughly ten days.
That sounds dramatic.
But context changes everything.
The decline from peak is roughly 9%. Historically, that places it inside what data classifies as a “fast 10% decline regime.”
According to compiled PSX history since 2000:
| Holding Period | Avg Return After 10% Drop | Probability Positive |
|---|---|---|
| 1 Year | 25%+ | ~73% |
| 3 Years | 80%+ cumulative | ~72% |
| 5 Years | 189%+ cumulative | ~93% |
Fast drawdowns in PSX have statistically favored patient capital.
That does not mean prices bounce tomorrow.
It means volatility is part of the compounding mechanism.
What Actually Happened?
Most retail investors zoom into the index.
Professionals zoom into liquidity.
Here’s what changed:
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