Long Term Market Recoveries
September 2, 2015 9:00am by Barry Ritholtz
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The 2011 decline of S&P500 index (closing prices, dividends ignored, Yahoo Finance: ^GSPC) was a 5-month 19,39% decline, from 1363,61 on Apr 29 to 1099,23 on Oct 3.
The graph says dividends are not ignored, but reinvested. Still, I don’t think that by doing that you can get a 7-month 7% decline in 2011, like the graph says.
Great point. That was almost a bear… Maybe because I have a lot of int’l it was a bear in that. I definitely remember it more severe than a 7% pimple.
Graphing that way is a bit misleading since the downside is capped at 100%. Perhaps a logarithmic or db scale would be more appropriate.