Markets Go Up And Markets Go Down

In the previous post, I mentioned the notion of recency bias – that is, to assume that the only possible outcomes on offer are those you have experienced. Sadly, for your ego, the market existed long before you decided to take an interest, and it will continue long after you’ve lost interest.

To bring the education, I have generated a timeline of crashes on the NYSE, looking at the depth and duration of the downturn and then comparing that to the period required for recovery.

You can right click on the image below and select open in new tab to get a bigger version.