The Worst Two Periods In The US Stock Market
There have been two post-war periods in the US stock market, with sideways action for about twelve and a half years and large drawdowns from all-time highs. Is another such period possible?
The two worst post-war periods in the US stock market are marked on the monthly S&P 500 chart below.
The table below summarizes a few statistics from the two worst post-war periods.
High inflation and an energy crisis caused the first such worst period, which lasted 12 years and five months.
The second-worst period lasted 12 years and four months and was due to back-to-back crises in high technology (dot-com) and the financial sector (GFC).
Is another long period of stagnation with high fluctuations in prices possible?
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