S&P500 bear market drawdowns

Is buying the S&P500 after a 25% drop from its previous ATH a good buy? Yes, at least since 2009…

Since March 2009, there have been only 16 trading days (out of 4,051 total) when the S&P500 was (based on closing prices) at least 25% below its previous ATH – see Figure 1. Of course, that’s just the last 16 years… but still it’s some food for thought.

In the 12 months since that event, the S&P500 has returned between 20% and 75%..

On April 8, the S&P500 was -18.9% from its previous ATH (based on closing prices) and -21.35% (based on intraday levels).