That was fast! When it comes to market recoveries from a correction, they don’t get much more v-shaped than the last seven months. After falling just short of a 20% decline (on a closing basis) in the span of 95 calendar days from 9/20/18 to 12/24/18, the S&P 500 has charged back and is on the cusp of closing above its record closing high from 9/20. If it closes above that level today, it will have rallied 24.7% in the span of just 120 days.
Present company included, there aren’t that many people who back in December would have anticipated a record closing high in the S&P 500 before April 30th! In our just-released B.I.G. Tips report, we took a look at prior corrections from all-time highs in the post-WWII period based on their magnitude and duration as well as how long it took them to reclaim their prior highs. We then compared those periods to the current one to find which ones had the most in common.