Notable Wall Street Crashes and Recoveries
1901-03
● Fall in Dow: 46%
● Losses recovered by July 1905
● 2 years to recover
1906-07
● Fall in Dow: 49%
● Losses recovered by September 1916
● 9 years to recover
1916-17
● Fall in Dow: 40%
● Losses recovered by November 1919
● 2 years to recover
1919-21
● Fall in Dow: 47%
● Losses recovered by November 1924
● 3 years to recover
1929-32
● Fall in Dow: 89%
● Losses recovered by November 1954
● 22 years to recover
1939-42
● Fall in Dow: 40%
● Losses recovered by January 1945
● 3 years to recover
1973-74
● Fall in Dow: 45%
● Losses recovered by December 1982
● 8 years to recover
The Wall Street 'Guaranteed Return' Myth
The graphic above shows an example of a %25 market return over a 4 year period. This %25 return would earn you exactly $0!