2008 & 2020

The 2008 financial crisis and the 2020 pandemic crash were the two great bear markets of the 21st century so far. Here is what caused each, how governments responded and how quickly stocks recovered.

The 2008 financial crisis

Risky mortgages, bundled into securities and held with heavy borrowing, collapsed when home prices fell. Lehman Brothers filed for bankruptcy on Sept. 15, 2008. The S&P 500 fell about 57% from its October 2007 peak to its March 9, 2009, low. In our price data, SPY fell about 56% over the same span, before dividends.

A real chart: SPY weekly bars, 2007 to 2010. Past performance does not predict future results.

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