How the market performed in past recessions

by oregon_forever

The table below shows how the market typically performed prior to, during and after recessions in the past. There are some interesting findings.

  1. Not all recessions had market crashes. Some recessions even saw market rallies.
  2. Buying during a recession is a great opportunity as stocks tend to appreciate greatly in the next 5 years.
  3. During recessions, markets only dropped by 1.5% on average.

Of course this doesn’t take into account certain things such as how expensive the market was in the first place and what bond yields were prior to the recession.