How the S&P 500 Performed During Major Market Crashes
Source: Visual Capitalist
I am working on a column on how concentrated big market indices can get when a handful of firms dominate the market cap (I’ll post it here next week).
In the process of researching this, I came across the above chart of Major Market Crashes:
“Like spectacular market peaks, market crashes have been a persistent feature of the S&P 500 throughout time.
Still, the forces underpinning each rise and fall are often less clear. Take the COVID-19 crash, for example. Despite lagging economic growth and historic unemployment levels, the S&P 500 bounced back 47% in just five months, in a stunning reversal.
Drawing data from Macrotrends, the above infographic compares six historic market crashes—examining the length of their recoveries and the contextual factors influencing their durations.”
What is astonishing is just how quickly this market fell 34% and then recovered.