lucadp According to Understanding Stock Market Corrections and Crashes : On average, the market declined 10% or more every 1.2 years since 1980, so you could even say corrections are common. However, once the market starts to turn, it can recover quickly.
The average recovery time for a correction is just four months! The history of crashes provides confidence in “staying the course” and “buying the dip” because recovery is expected to be quick. Most recently, the recovery from the 2022 stock market decline took only 4 months; it was average, fast and V-shaped. But no one knows how long the next stock market crash will last, nor how long it will take to recover from that crash.
We do know that the past 15 years of rising stock markets is the longest bull market ever and that stock prices are at all-time highs. And we also know that there has never been 78 million people in the Retirement Risk Zone at the same time -- they are the baby boomers. Baby boomers cannot afford a “bad” crash Baby boomers need to be concerned about the worst cases because the rest of their lives could be ruined by the next crash, and with $70 trillion at risk the stakes are high for them and their heirs.
So rather than averages, let’s look at worst cases because that’s what baby boomers need to protect against. Here are the 4 worst crashes and the time it took to recover from them: S&P Indexes The Great Depression was the worst crash. It took 25.
2 years to recover in nominal terms and .