The potential for a recession captured the minds of financial professionals and investors alike in 2022 and continues to be a hot topic going into the new year.
Here is some research from Dimensional Fund Advisors showing US stock performance during previous recessions and how long each downturn lasted.
DFA’s interactive chart “Market Returns through a Century of Recessions” emphasizes the forward-looking nature of markets as it examines how stocks have behaved during US economic downturns. Ultimately, the piece shows that markets around the world have often rewarded investors even when economic activity has slowed.
The exhibit also captures the uniqueness of recessions.
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