…a 40% decline in the S&P 500 would just take us back three years, to June 2019. Unwinding three years of gains is nothing. This happened many times before. And it’s no biggie.
By the time the S&P 500 bottomed out in March 2009, it had unwound all the gains since 1996. It had unwound 13 years of gains. The Nasdaq had also unwound 13 years of gains.
Just to give you a for-instance to think about: If the S&P 500 index drops 70% from the January high, which would be a huge massive drop, it would only wipe out the gains of the past 10 years. This is how crazy the stock price inflation had been over the past decade.
https://wolfstreet.com/2022/06/09/dotcom-bust-2-new-improved/