Understanding Stock Market Corrections and Crashes (2025) - Covenant Wealth There have been 24 stock market corrections since World War II and the average correction sees the market drop by -14 3%, which can be painful Not only are corrections more minor than crashes, but they are also more gradual, too
List of recessions in the United States - Wikipedia Before the COVID-19 recession began in March 2020, no post-World War II era had come anywhere near the depth of the Great Depression, which lasted from 1929 until 1941 (which included a bull market between 1933 and 1937) and was caused by the 1929 crash of the stock market and other factors
A Short History of U. S. Stock Market Corrections Bear Markets Since bottoming last March following the Corona Crash, the S P 500 is up nearly 80% And other than a brief downturn in September, the rise has gone on more or less unabated in terms of corrections: Since 1950, the S P 500 has experienced 36 double-digit drawdowns
U. S. Stock Market Returns – a history from the 1870s to 2024 While the U S stock market has generally trended upwards over time (6 9% per year after inflation and including dividends) from 1872 to 2022, the market from year to year can be volatile In this time frame, the market has grown in 69% of the years, and declined in 31% of years on record
A History of Stock Market Percentage Declines In Charts (15% to 50%+) 15% drops in a major index like the S P 500 are very common Expect one to two 15% or greater declines in most five-year periods The following chart shows all the 15% drops (following at least a 15% rally) going back to the late 1800s Click on any chart to see an expanded version of it
A Historical Look at Market Downturns to Inform Scenario Analysis We identified 34 U S equity-market drawdowns of over 10% since 1946, classifying them into four distinct categories based on their trigger event Macroeconomic and fundamental catalysts typically led to larger, longer drawdowns, while leverage liquidity and noneconomic events resulted in faster sell-offs and quicker recoveries
Market Declines: A History of Recoveries - MFS Investment Management Sharp, sudden market declines are disconcerting, prompting many investors to reduce their stock holdings, or pull out of the market As history has shown, financial markets have rebounded from market shocks, posting strong long-term gains
How Long Do Economic Downturns Last? - Acorns The Great Recession of 2008 and 2009, which lasted for 18 months, was the longest period of economic decline since World War II Stock market downturns vary in length, but they’re also typically much shorter than periods of growth
Understanding market downturns and recovery cycles According to analysis by the chief economist of Vanguard, between 1980-2020 investors experienced eight “bear markets” (defined as a decline of 20% or more lasting at least two months) In that time, markets have seen 13 “corrections” (a decline of 10% or more)