What Do Market Recoveries Look Like?

Since 1871, market downturns have recovered as follows:

  • 33 percent of market downturns recover within a month;
  • 50 percent of market downturns recover within two months;
  • 80 percent of market downturns recover within one year; and
  • 95 percent of the time those big “once or twice in a lifetime drops” return to even in three to four years.

Collectively, the average time it takes for the market to recover (top to trough to top again) is 7.9 months.

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