If a Stock Market Crash Happens, History Says This Is How Long It Could Take Investors to Recover
Stock market crashes of 30% or more have taken anywhere from six months to 7.5 years to fully recover since 1957.
Overview
Given that the S&P 500 (SNPINDEX: ^GSPC), Nasdaq Composite (NASDAQINDEX: ^IXIC), and Dow Jones Industrial Average (DJINDICES: ^DJI) are all trading just a few percentage points off record highs, some are worried things could turn south soon. And they're wondering: If a stock market crash is coming, how long might it take for my portfolio to recover?
First, I want to get something pretty important out of the way. While a crash is always possible, don't assume one is around the corner based solely on the market setting record highs. It's a neat trick our minds play on many of us, but a market setting record highs isn't a particularly fragile situation. In fact, data says otherwise.
Details
Investment firm Dimensional Fund Advisors looked at stock market data from 1926 through 2022 and found that a year after a new record was set, the market was higher 81% of the time by an average of 13.7%.
Source
Originally published at www.fool.com.