After significant declines, US stocks have tended to break even quickly.
April 25, 2023 / Contributor(s) / Comments Off on After significant declines, US stocks have tended to break even quickly.
One year after each of the S&P 500 Index’s 10 worst one-day drops, the Index notched double-digit positive returns in all but one instance—and remained positive three and five years later, too. The chart below doesn’t include reinvested dividends, which would have made returns even higher.
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S&P 500 Price Index is a market capitalization-weighted price index composed of 500 widely held common stocks, and does not include the reinvestment of dividend payments.
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