Market › Historical stock market crashes
Historical stock market crashes
Every major fall of the S&P 500, the IBEX 35 and the MSCI World: how far they dropped, how long they took to hit bottom and regain their high, and what €10,000 invested just before each one would be worth today.
S&P 500
S&P 500 in points (USD), without dividends · since 1927
Since 1927, the S&P 500 has fallen more than 15% on 23 occasions (monthly closes, no dividends). On average it took 14 months to hit bottom and 2.7 years more to regain its high: it recovered from all of them.
Distance from its previous high, month by month
| Crash | Fall | To the bottom | Bottom to prior high | $10,000 at the peak, today |
|---|---|---|---|---|
| Inflation and rate hikes (2022)Dec 2021 → Sep 2022 | −25% | 9 months | 15 months | $16,390 |
| COVID-19 (2020)Dec 2019 → Mar 2020 | −20% | 3 months | 4 months | $24,178 |
| Euro debt crisis (2010-12)Apr 2011 → Sep 2011 | −17% | 5 months | 5 months | $57,286 |
| Global financial crisis (2007-09)Oct 2007 → Feb 2009 | −53% | 16 months | 4.1 years | $50,417 |
| Dot-com bubble (2000-02)Aug 2000 → Sep 2002 | −46% | 2.1 years | 4.7 years | $51,470 |
| Asian and Russian crises (1997-98)Jun 1998 → Aug 1998 | −16% | 2 months | 3 months | $68,895 |
| Gulf War (1990)May 1990 → Oct 1990 | −16% | 5 months | 4 months | $216,248 |
| Black Monday (1987)Aug 1987 → Nov 1987 | −30% | 3 months | 20 months | $236,857 |
| 1981-82 recessionNov 1980 → Jul 1982 | −24% | 20 months | 5 months | $555,902 |
| Stagflation (1977-78)Dec 1976 → Feb 1978 | −19% | 14 months | 18 months | $726,925 |
| Oil crisis (1973-74)Dec 1972 → Sep 1974 | −46% | 21 months | 5.8 years | $661,715 |
| 1969-70 recessionNov 1968 → Jun 1970 | −33% | 19 months | 23 months | $720,821 |
| 1966 declineJan 1966 → Sep 1966 | −18% | 8 months | 7 months | $841,036 |
| 1962 market breakDec 1961 → Jun 1962 | −23% | 6 months | 14 months | $1,091,760 |
| 1957 recessionJul 1956 → Dec 1957 | −19% | 17 months | 9 months | $1,581,604 |
| 1948-49 recessionJun 1948 → Jun 1949 | −15% | 12 months | 6 months | $4,666,392 |
| Post-war slump (1946-48)May 1946 → Feb 1948 | −27% | 21 months | 2.6 years | $4,072,753 |
| World War II (1939-45)Oct 1938 → Apr 1942 | −42% | 3.5 years | 2.7 years | $5,931,314 |
| 1937 recessionFeb 1937 → Mar 1938 | −53% | 13 months | 7.8 years | $4,325,327 |
| Great Depression relapse (1934)Jan 1934 → Mar 1935 | −24% | 14 months | 5 months | $6,993,321 |
| Great Depression relapse (1933)Aug 1933 → Oct 1933 | −19% | 2 months | 3 months | $7,043,769 |
| Great Depression relapse (1932)Aug 1932 → Feb 1933 | −33% | 6 months | 3 months | $9,310,536 |
| 1929 Crash and Great DepressionAug 1929 → Jun 1932 | −86% | 2.8 years | 22.2 years | $2,463,431 |
IBEX 35
IBEX 35 in points (EUR), without dividends · since 1993
Since 1993, the IBEX 35 has fallen more than 15% on 8 occasions (monthly closes, no dividends). On average it took 20 months to hit bottom and 6.0 years more to regain its high: it recovered from all of them.
Distance from its previous high, month by month
| Crash | Fall | To the bottom | Bottom to prior high | €10,000 at the peak, today |
|---|---|---|---|---|
| Inflation and rate hikes (2022)May 2021 → Sep 2022 | −19% | 16 months | 5 months | €20,804 |
| From the 2017 high to COVID (2017-20)May 2017 → Oct 2020 | −41% | 3.4 years | 3.4 years | €17,494 |
| China and oil slump (2015-16)Mar 2015 → Jun 2016 | −29% | 15 months | 8.2 years | €16,520 |
| Euro debt crisis (2010-12)Dec 2009 → May 2012 | −49% | 2.4 years | 12.7 years | €15,941 |
| Global financial crisis (2007-09)Oct 2007 → Feb 2009 | −52% | 16 months | 16.7 years | €11,978 |
| Dot-com bubble (2000-02)Feb 2000 → Sep 2002 | −57% | 2.6 years | 4.0 years | €15,123 |
| Asian and Russian crises (1997-98)Jul 1998 → Sep 1998 | −27% | 2 months | 14 months | €18,138 |
| 1994 rate hikesJan 1994 → Mar 1995 | −26% | 14 months | 13 months | €47,816 |
MSCI World
MSCI World in points (EUR), without dividends · since 2009
Since 2009, the MSCI World has fallen more than 15% on 1 occasions (monthly closes, no dividends). On average it took 2 months to hit bottom and 8 months more to regain its high: it recovered from all of them.
Distance from its previous high, month by month
| Crash | Fall | To the bottom | Bottom to prior high | €10,000 at the peak, today |
|---|---|---|---|---|
| COVID-19 (2020)Jan 2020 → Mar 2020 | −19% | 2 months | 8 months | €23,226 |
What happens if the stock market falls 20%?
Falls are normal
Since 1927, the S&P 500 has fallen more than 15% on 23 occasions: roughly once every 4 years. It is not an anomaly: it is the price of the stock market's long-term return.
Time matters more than timing
Someone who bought at the worst moment of the financial crisis (Oct 2007) saw their money fall 53%, but got it back in 5.4 years and today would have 5.0 times the amount invested (before dividends).
Panic selling is usually expensive
In 2020 the S&P 500 fell 20% in 3 months and regained its high 4 months later. Those who sold at the bottom missed the recovery.
But it is not always quick
The worst fall in the table (1929 Crash and Great Depression) was 86% and took 25.1 years to recover. That is why money you may need soon should not be invested, and why an emergency fund helps.
What the textbooks usually say
Diversify (many companies, sectors and countries), invest with a long horizon, invest gradually rather than all at once, and don't check your portfolio every day. This is general information: every situation is different and this is not investment advice.
Monthly closes and the index in points, without dividends: with reinvested dividends, recoveries are faster. A fall starts when the index is 15% below its high and ends when it rises 20% from the bottom. Past performance does not guarantee future results.
General information with market data, not investment advice.