Saturday, March 07, 2009

Time Required To Recover Lost Value

Andreas Steiner maintains a performance analysis website containing a number of applications used in analyzing investment performance and investment risk management. Recently, Andreas prepared a presentation noting the magnitude of market declines and the resulting length of time necessary to recover the lost value. Below is the page from the presentation detailing the recovery time periods.

If we are in a period similar to the early 1970's, the market snapback may not be a quick one.

The entire presentation can be reviewed at S&P 500 Drawdown/Recovery period.

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