Market View: Recovering from Recession

The stock market tends to be a forward-looking indicator, falling before recessions are officially declared and rising before economic recoveries begin. This chart shows the magnitude of the equity rally corresponding to each U.S. economic contraction since 1923. The columns represent the total return of the S&P 500 Index from its low during the contraction to the official end of the contraction.

The S&P 500 has historically started its rebound prior to the end of each economic contraction. The average rebound has been 25.1 percent.

Sources: Haver Analytics; Gluskin Sheff + Associates Inc., Bloomberg

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This illustration was compiled using information from outside sources. These companies are not affiliated with ICMA-RC. The performance data quoted represents past performance. Past performance is no guarantee of future results.