Every time the S&P 500 fell more than 20% from its high, how long it lasted and how long it took to recover.
Key findings
- Since 1928, the S&P 500 has fallen at least 20% from an all-time high 10 times, measured with monthly closes.
- The worst began in August 1929: −86.0% to June 1932, and without dividends it took 22 years and 3 months to regain the high.
- Half of the falls regained their high within 22 months of the low; with dividends reinvested, recovery is faster.
How we calculated it
We use the S&P 500's monthly closes without dividends since 1928 and count as a major fall every time the index dropped at least 20% from its previous all-time high. We measure how far it fell, how many months it took to reach the low and how many more months it needed to get back to that high. Because we use monthly closes, falls within a month can be deeper than those shown here: in March 2020, for example, the daily fall was deeper than the monthly one.
Falls that happened before a previous high was regained (such as those of 1937 or 1946) are part of the 1929 fall, because the index did not regain its 1929 high until 1954.
Every fall of more than 20%
| Previous high | Low | Fall | Months falling | Months to recover | With dividends |
|---|---|---|---|---|---|
| Aug 1929 | Jun 1932 | −86.0% | 34 | 267 | — |
| Dec 1961 | Jun 1962 | −23.5% | 6 | 14 | — |
| Nov 1968 | Jun 1970 | −32.9% | 19 | 23 | — |
| Dec 1972 | Sep 1974 | −46.2% | 21 | 70 | — |
| Nov 1980 | Jul 1982 | −23.8% | 20 | 5 | — |
| Aug 1987 | Nov 1987 | −30.2% | 3 | 20 | — |
| Aug 2000 | Sep 2002 | −46.3% | 25 | 56 | 49 |
| Oct 2007 | Feb 2009 | −52.6% | 16 | 49 | 37 |
| Dec 2019 | Mar 2020 | −20.0% | 3 | 4 | 4 |
| Dec 2021 | Sep 2022 | −24.8% | 9 | 15 | 15 |
“With dividends”: months to regain the high with dividends reinvested (series available from 1988).
Distance from the high, month by month
What it means for you
Major falls are a normal part of investing in shares and, in this index, every one was eventually recovered, although sometimes it took many years. That is why it makes sense to invest only money you will not need soon, keep a separate emergency fund and avoid selling at the worst moment. What happened to the S&P 500 does not guarantee the future or apply to other indices.