Bank of America (BofA) Global Research examined the S&P 500's maximum drawdown during each declared recession, as well as the maximum drawdown during recessions from one year prior to a recession being declared.
Looking back 95 years (since 1927), there have been 15 separate stock market drawdowns associated with U.S. Since 1929, around 2/3rds of the $SPX peak to trough drawdowns have occurred during, not before, US Recessions.
History suggests that the worst of the market declines happen during the Recession.
What the dataset below shows, which was aggregated by Bank of America Global Research and shared on social media platform Twitter by David Marlin, the CEO of Marlin Capital, is that recessions have been anything but a walk in the park for Wall Street. Nevertheless, history can serve as a fairly accurate guide of what to expect from stocks during a recession.
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