What Is The Average Time To Recoup Losses From A Market Dive?

[fmdog44]

I was watching one of Susie Ormans lectures and she said it takes on the average of ten yers to get back to where you were before a market correction. Now, I realize there are many factors but lets say $100,000 in 50/50 stocks & bonds for a 10% correction. I can't find this number in my website searches but I don't believe for one second it tales ten years.

 

[Aunt Bea]

When the market tanked in 2008 it took me until 2013 to get my portfolio balance back to where it had been.

This is not a very scientific example because I was living totally from my portfolio during those years.

It also does not take into account the cost/lost opportunity to move forward during those five years, it was five years spent just getting back to where I had been.

I just tallied up 2018 and my balance is down from last year by about 2.69% but 2017 was such a great year that the minor drop is pretty insignificant.

I just try to stick with my plan.

 

[mathjak107]

there is no real recovery time you can hang a hat on because it is all over the map .. if you are looking for a number to hang your hat on it is like asking how long is a rope .

 

[mathjak107]

it really seems that recoveries are based on whether it was a correction or a bear market. drops of more than 20% have taken longer to recover and range from 2,112 days to just 84 days . the mean is 684

drops of less than 20% range from 25 days to 270 with a mean of 121

each downturn is different so all that counts is the one you are in .