Historically, what is the recovery time for a market "correction"?

[Scuba]

The company I worked for had almost a $30M loss on its investment portfolio for the fiscal year ended 3/31/09. By 3/31/10, there was a gain of almost $30M, essentially recovering the prior fiscal year's losses. We just stayed invested in our 75/25 AA and it recovered pretty quickly.

 

[mathjak107]

That's how I was reading them.

just got some answers .

yes it is cumulative and yes white is zero to 3% so you both are correct.

 

[audreyh1]

just got some answers .

yes it is cumulative and yes white is zero to 3% so you both are correct.

Thanks. I have just looked up CAGR to be sure and checked out the site portfoliocharts.com. Very useful charts!

 

[mathjak107]

i like the info on all the various popular portfolio's tested .

 

[ears20]

Fascinating site! I like the graphical representations of some things that seem intuitive but can be more difficult to explain. It also got me thinking about some allocations beyond just stocks/bonds.

 

[DrBrisket]

Not quite as engaging as portfoliocharts, but provides a useful perspective nonetheless, is an article from AAII's October 2017 Journal by Sam Stovall Stock Market Retreats and Recoveries.

The discussion on the relative performance of equal-weighted versus cap-weighted indexes over time was very interesting to me.

 

[NW-Bound]

Not quite as engaging as portfoliocharts, but provides a useful perspective nonetheless, is an article from AAII's October 2017 Journal by Sam Stovall Stock Market Retreats and Recoveries.

The discussion on the relative performance of equal-weighted versus cap-weighted indexes over time was very interesting to me.

Very interesting. Thanks for sharing.

I will keep this info in mind, given the "Wh***" declaration just made in another thread. Now, I know what to do after the market crashes: go heavy on small caps.

 

[SecondCor521]

I thought the people on this thread might find the following article interesting. It is a Wall Street firm analysis that correlates volatility before a downturn with the size of the downturn:

Next stock market crash will look different than the financial crisis - Business Insider

 

[DEC-1982]

I thought the people on this thread might find the following article interesting. It is a Wall Street firm analysis that correlates volatility before a downturn with the size of the downturn:

Next stock market crash will look different than the financial crisis - Business Insider

Clicking on your link asks for a sign-in.

 

[audreyh1]

Try https://finance.yahoo.com/news/next-stock-market-crash-look-110200769.html

 

[SecondCor521]

Clicking on your link asks for a sign-in.

Sorry about that. I didn't think I had a Business Insider log in. Huh.

Anyway, audreyh1's link above this post is the same article, just hosted on Yahoo. (Thanks, @audreyh1 )