Recovery time
InvestingDefinition
Time it takes to recoup losses from a drawdown and reach a new high. Often longer than the drawdown itself — psychologically painful and often miscalculated.
S&P 500 recovery from 2008-2009 bottom: ~5 years to new high. From 2020 COVID bottom: ~5 months. Bitcoin recovered from 2018 bear in ~3 years; from 2022 bear in ~2 years. Fast bears recover fast; structural bears take a decade (Japan 1989, US 1929).
S&P 500 recovery from 2008-2009 bottom: ~5 years to new high. From 2020 COVID bottom: ~5 months. Bitcoin recovered from 2018 bear in ~3 years; from 2022 bear in ~2 years. Fast bears recover fast; structural bears take a decade (Japan 1989, US 1929).