Unexpectedly Intriguing!
05 January 2009

Doug Short has a great chart comparing four big bear markets for stocks as a percentage change of their peak value before finally hitting bottom:

Four Bad Bears, 2009-01-02 - Source: Doug Short

We thought it might be fun to turn that chart on it's head and look at how stock prices changed in the ten years following their hitting bottom, as a percentage of their lowest average monthly value during their crashes. To do that, we turned to our historic data for the S&P 500, found the five worst percentage declines from peak to trough, then created the following graph to show the post-crash aftermath:

Post-Recovery Value of S&P 500 as Percentage of Bottom Following the Biggest Crashes on Record

We should note that the periods showing the ten years spanning June 1932 to May 1942 and April 1938 to March 1948 overlap. The data for the June 1932 to May 1942 period reveals the crash that created the bottom for against which the April 1938 to March 1948 was measured!

Labels: ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.