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Comparing the 1975, 2003 and 2009 sharemarket downturns and their ultimate recoveries shows how those recoveries lasted for several years. In the chart below, we have rebased the market returns from each of those periods to show the comparative falls and rises.
The index is the US S&P 500 and shows percentage drop from market peak as shown at 100. Source: Datastream.
The above article has been sourced from FIL Investment Management (Australia) Limited.
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