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10 Worst Market Drawdowns Since the 1960s

    Returns (%) After Reaching Bottom
Cause Max Drawdown # of Months
To Hit Bottom
# of Months
To Break Even
 After 6  Months After 1 Year After 3 Years
Kennedy Slide/Flash Crash (1961–1962) -27.97 6 14 20.45 32.66 16.65
Vietnam Worries (1968–1970) -36.06 18 21 22.80 43.73 15.92
Nixon Shock (1973–1974) -48.15 21 69 29.74 39.36 15.49
Rate Hikes to Fight Inflation (1980–1982) -27.11 20 3 44.14 58.33 22.35
Black Monday (1987) -33.51 3 20 19.26 22.78 13.69
Iraq Invaded Kuwait (1990) -19.92 3 4 27.81 29.10 15.97
Dot-com Bubble Burst (2000–2002) -49.15 31 56 11.49 33.73 15.47
Global Financial Crisis (2007–2009) -56.78 17 49 52.75 68.57 26.54
COVID-19 Pandemic (2020) -33.93 1
5
44.67
74.78
20.62
Inflation Returns (2022) -25.30 9 -- 15.48 22.06 --
Average -35.79 13 27 28.86 42.51 18.08

Past performance does not guarantee future results. Data shown is for the S&P 500 Price Index as of 11/30/23. A drawdown measures a peak-to-trough decline in the market. Returns for less than one year are not annualized. Indices are unmanaged and not available for direct investment. The S&P 500 Price Index is a market capitalization-weighted price index composed of 500 widely held common stocks, and does not include the reinvestment of dividend payments. Data Sources: Morningstar and Hartford Funds, 12/23.

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