Crises and how long the recovery took
The Atlas measures every crisis the same way: from the highest year end before the event to the lowest after it, and how many years it took to get back to the old high.
Year ends only see the end of each year. A fall within a year may have gone deeper.
A crisis is two numbers: how deep it went and how long the way back took, and after inflation the way back is often longer.
After 2000, US shares with dividends fell by 37.4 % and were back at the old level after 7 years, in real terms only after 14 years.
Year ends, from the high before the event to the lowest level after it.
Questions people ask
How long did the recovery after a stock market crash take?
For the big crises of US shares very different lengths of time, from a few years to almost a decade, measured on year ends. In real terms, after inflation, it can take considerably longer.
What does a fall from the high mean?
The distance from the highest level before the slump to the lowest after it, in percent. A loss of half needs a doubling afterwards to get back to the old level.
Why do year ends show a slump as smaller?
Because they only show the level on the last trading day of the year. A slump that recovers within the same year hardly shows in them.
Source: Aswath Damodaran, NYU Stern, histretSP, as of 2025, retrieved 2026-11-09 · U.S. Bureau of Labor Statistics, CPI-U (CUUR0000SA0), as of 2025, retrieved 2026-11-09 · Federal Reserve History, Stock Market Crash of 1929, as of 1929, retrieved 2026-10-21 · Federal Reserve History, Oil Shock of 1973-74, as of 1973, retrieved 2026-10-21 · Federal Reserve Board, Monetary Policy Report to the Congress, 13. Februar 2001, as of 2000, retrieved 2026-10-21 · Federal Reserve History, The Great Recession, as of 2008, retrieved 2026-10-21 · Federal Reserve Board, FOMC statement, 16. März 2022, as of 2022, retrieved 2026-10-21
One crisis at a time: the fall from the high, the low and the year the old level came back.
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