Saturday, April 5, 2014

5/4/2014: Markets do come back… some faster others slower…


A very neat summary table showing equity markets responses to major past shocks, starting with 1941 Pearl Harbor attack.

Most interesting is the recovery duration: median 14 days to pre-shock levels, with maximum of 285 days in the case of Lehman Bankruptcy for the US markets. Now, put this against Irish 'recovery' with Iseq (note the above figures are not adjusted to control for survivorship bias) still deeply below pre-crisis valuations, some 2,200 days and counting…


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