Major U.S. Market Crashes and Recovery Times
Hey friends,
If your group chats, social media feeds, and pillow thoughts have all been haunted by the state of the market lately… same. And while I usually post about whatever strikes my fancy, today it’s this: the crash, the chaos, and the oddly satisfying patterns history reveals.
A friend of mine–let’s call them “an economist with strong charts and stronger opinions”--shared this gem with me, and I had to post it.
Let’s break it down. The graphic in this post illustrates major U.S. market crashes: how much the market dropped during each, and how long it took to bounce back.
Quick Facts:
If your group chats, social media feeds, and pillow thoughts have all been haunted by the state of the market lately… same. And while I usually post about whatever strikes my fancy, today it’s this: the crash, the chaos, and the oddly satisfying patterns history reveals.
A friend of mine–let’s call them “an economist with strong charts and stronger opinions”--shared this gem with me, and I had to post it.
Let’s break it down. The graphic in this post illustrates major U.S. market crashes: how much the market dropped during each, and how long it took to bounce back.
Quick Facts:
- 1929 (Great Depression): A brutal -89% drop. Took about 25 years to recover. Yikes.
- 1987 (Black Monday): -22%, recovered in just 2 years.
- 2000 (Dotcom Bubble): -49% with a 7-year road back.
- 2008 (Global Financial Crisis): -57%, recovered in about 5 years.
- 2020 (COVID Crash): -34% but snapped back in just 6 months. Wild.
What About 2020–2025?
Before 2025 brought us Tariff Turmoil, we’d already seen some drama. The post-pandemic bull run (late 2020 through 2021) gave investors hope, but between inflation, Fed rate hikes, and global jitters, the market wobbled in 2022 and 2023. The S&P 500 saw a 20–25% dip from its 2021 highs. But by mid-2024, the market had mostly recovered--until early 2025, when the current trade tensions triggered another drop.
So if you're counting, that’s two dips in five years--but also two rebounds. Not bad, historically speaking.
And now, 2025 is giving strong “new entry unlocked” vibes, thanks to sweeping tariffs and escalating trade tensions. The S&P dropped fast this quarter, and depending on how the U.S.--China–EU standoff evolves, we might be in for a V-shaped recovery (quick), a U (slow), or–hopefully not–an L (long and flat).
So what’s the point of this post?
To say: if you’re feeling uneasy, you’re not alone. But also–history shows markets do recover. Sometimes it takes time, but crisis often breeds reinvention (and yes, opportunity).
Investor tip I overheard (and by “overheard” I mean I grilled my friend):
- Keep some strategic cash handy.
- Don't panic about your investment strategy.
- Watch sectors like U.S. manufacturing, AI, defense, and green energy.
And now I’m curious–what’s your gut telling you about this market mess?
Leave a comment, DM me, or just scream into the void. I’ll be here, sipping tea and pretending I understand bond yields.
P.S. U.S. stock markets have just shown signs of improvement, as we speak, following news that President Trump has decided to delay tariffs for 90 days, with the exception of a 125% tariff on China. This shift in policy may provide some short-term relief, but the long-term effects on the market and global trade dynamics remain to be seen.
