The last two recessions were devastating for the S&P 500.
The dot-com bubble during March 2000 to October 2002 saw the Index drop -49%, while the Global Credit Crisis from October 2007 to March 2009 saw an even greater drop of -57%.
Since then, the S&P 500 has been on fire, gaining 250% and breaking record highs almost daily.
As the old adage goes, “the bigger they are, the harder they fall”. If the S&P loses 57% in the next market crash, that would represent $10 trillion in value lost, and would take the Index down to 1,077.
As the more cyclical sectors begin to ….