Sid Hopps
May 5, 2023
Here are the last 10 times the broad market indexes declined by more than 15% from their highs, and how long it took to make new highs
Here are the last 10 times the broad market indexes declined by more than 15% from their highs, and how long it took to make new highs:
February 19, 2020 - the S&P 500 began a decline of approximately 33%, and it took until August 2020 to make new highs.
September 20, 2018 - the S&P 500 began a decline of approximately 20%, and it took until April 2019 to make new highs.
June 9, 2015 - the S&P 500 began a decline of approximately 15%, and it took until July 2016 to make new highs.
October 9, 2007 - the S&P 500 began a decline of more than 57%, and it took until March 2013 to make new highs.
October 11, 2002 - the S&P 500 began a decline of approximately 50%, and it took until October 2007 to make new highs.
July 16, 1998 - the S&P 500 began a decline of approximately 19%, and it took until March 2000 to make new highs.
July 17, 1990 - the S&P 500 began a decline of approximately 20%, and it took until July 1991 to make new highs.
August 25, 1987 - the S&P 500 began a decline of approximately 34%, and it took until August 1989 to make new highs.
November 28, 1980 - the S&P 500 began a decline of approximately 27%, and it took until November 1982 to make new highs.
January 11, 1973 - the S&P 500 began a decline of approximately 48%, and it took until December 1976 to make new highs.
These are approximate percentage declines and durations.
Does history always repeat itself?
Significant market declines of lasting duration can reasonably be expected to happen in the future.
For long term investors, we feel the time spent during of these structural equity market declines is money lost.
We never know how long these market declines will last. They can last less than a month or they can last for years as evidenced by historical evidence as listed above. Our Index automatically reallocates capital into defensive assets to preserve and grow portfolios while the equity markets continue in these structural declines. Our Index will then reallocate capital into broad market equity ETFs during risk-on environments.