How Quickly Do Stocks Begin to Bounce Back? (2024)

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How Quickly Do Stocks Begin to Bounce Back?

Managing VolatilityClient ConversationsServicing Clients

Sharp market declines can be painful, but stocks tend to bounce back relatively quickly.

10 Worst Market Drawdowns Since the 1960s

Returns (%) After Reaching Bottom
CauseMax Drawdown# of Months
To Hit Bottom
# of Months
To Break Even
After6 MonthsAfter1 YearAfter3 Years
Kennedy Slide/Flash Crash (1961–1962)-27.9761420.4532.6616.65
Vietnam Worries (1968–1970)-36.06182122.8043.7315.92
Nixon Shock (1973–1974)-48.15216929.7439.3615.49
Rate Hikes to Fight Inflation (1980–1982)-27.1120344.1458.3322.35
Black Monday (1987)-33.5132019.2622.7813.69
Iraq Invaded Kuwait (1990)-19.923427.8129.1015.97
Asian Financial Crisis (1998)-19.342329.3637.935.66
Dot-com Bubble Burst (2000–2002)-49.15315611.4933.7315.47
Global Financial Crisis (2007–2009)-56.78174952.7568.5726.54
COVID-19 Pandemic (2020)-33.931544.6774.7820.86
Average-35.19122430.2544.1016.84

Past performance does not guarantee future results. Data shown is for the S&P 500 Price Index as of 9/30/23. A drawdown measures a peak-to-trough decline in the market. Returns for less than one year are not annualized. Indices are unmanaged and not available for direct investment. The S&P 500 Price Index is a market capitalization-weighted price index composed of 500 widely held common stocks, and does not include the reinvestment of dividend payments. Data Sources: Morningstar and Hartford Funds, 11/23.

Talk to your financial professional to learn more about maintaining perspective during times of volatility.

Investing involves risk, including the possible loss of principal.

CCWP123 3240417

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How Quickly Do Stocks Begin to Bounce Back? (2024)

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