Every Major S&P 500 Drawdown Since 1985
| Event | Start | End | Depth | Duration | Recovery | Severity Score |
|---|---|---|---|---|---|---|
| Black Monday | Oct 1987 | Dec 1987 | -33.5% | ~100 days | ~2 years | 11.0 |
| Early 1990s Recession | Jul 1990 | Oct 1990 | -19.9% | ~87 days | ~7 months | 5.5 |
| LTCM / Russian Crisis | Jul 1998 | Aug 1998 | -19.3% | ~45 days | ~3 months | 5.2 |
| Dot-Com Crash | Mar 2000 | Oct 2002 | -49.1% | ~929 days | ~7 years | 12.0+ |
| Great Financial Crisis | Oct 2007 | Mar 2009 | -56.8% | ~517 days | ~5.5 years | 12.0+ |
| 2011 EU Debt Crisis | Apr 2011 | Oct 2011 | -19.4% | ~157 days | ~6 months | 5.3 |
| 2015-2016 Selloff | May 2015 | Feb 2016 | -14.2% | ~282 days | ~4 months | 3.8 |
| Late 2018 Selloff | Sep 2018 | Dec 2018 | -19.8% | ~95 days | ~4 months | 5.4 |
| COVID Crash | Feb 2020 | Mar 2020 | -33.9% | ~23 days | ~5 months | 10.5 |
| 2022 Bear Market | Jan 2022 | Oct 2022 | -25.4% | ~282 days | ~2 years | 7.2 |
Note: The 9/11 attacks (September 2001) occurred within the broader Dot-Com Crash of 2000-2002 and are not listed as a separate drawdown event.
Key Observations
- -Average recovery time from 20%+ drawdowns: approximately 2-5 years, though the range is wide depending on the economic backdrop and policy response.
- -The deepest drawdowns (2000, 2008) had severity scores above 12, reflecting both the extreme depth and prolonged duration of those declines.
- -The COVID crash was the fastest recovery from a 30%+ drawdown in history. The S&P 500 fell 33.9% in just 23 trading days and recovered to new all-time highs within 5 months, fueled by unprecedented fiscal and monetary stimulus.
- -Drawdowns of 10-20% occur roughly every 1-2 years on average, making them a normal part of equity investing. Knowing this helps investors stay disciplined rather than panic.
How to Read This Table
Event: The commonly used name for the drawdown or the economic/market event that triggered it.
Start: The approximate month the S&P 500 began declining from its prior peak (all-time high at that point).
End: The approximate month the S&P 500 reached the trough (lowest point) of the drawdown.
Depth: The maximum percentage decline from the peak to the trough. A depth of -56.8% means the index lost more than half its value.
Duration: The number of trading days (approximate) from the start of the decline to the trough.
Recovery: The estimated time from the trough until the S&P 500 surpassed its previous all-time high and set a new one.
Severity Score: An estimated Drawdown Severity Score based on DrawdownAlerts' methodology, which considers both depth and duration relative to historical norms. Higher scores indicate more extreme, statistically rare drawdowns.
Frequently Asked Questions
What is the worst S&P 500 drawdown in history?
The worst S&P 500 drawdown since 1985 was the Great Financial Crisis of 2007-2009, which saw the index fall 56.8% from its October 2007 peak to its March 2009 trough. It took approximately 5.5 years for the S&P 500 to fully recover to new all-time highs. The Dot-Com Crash of 2000-2002 was the second-worst, with a 49.1% decline and an approximately 7-year recovery period.
How often does the S&P 500 have a 20% drawdown?
Since 1985, the S&P 500 has experienced drawdowns of 20% or greater roughly once every 5-7 years on average. Notable 20%+ drawdowns include Black Monday (1987, -33.5%), the Dot-Com Crash (2000, -49.1%), the Great Financial Crisis (2007, -56.8%), the COVID Crash (2020, -33.9%), and the 2022 Bear Market (-25.4%). Smaller drawdowns of 10-20% occur more frequently, roughly every 1-2 years.
How long does it take the S&P 500 to recover from a drawdown?
Recovery time varies dramatically depending on the severity of the drawdown. Moderate drawdowns of 10-20% have historically recovered within 3-7 months. The COVID Crash of 2020, despite being a 33.9% decline, recovered in just 5 months — the fastest recovery from a 30%+ drawdown in history. However, the deepest drawdowns like the Dot-Com Crash and the Great Financial Crisis took 5-7 years for full recovery to new all-time highs. View the current S&P 500 (SPY) drawdown status.
Data based on S&P 500 daily closing prices. Drawdown Severity Scores are estimated using DrawdownAlerts' methodology. Dates are approximate.
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