Black Swan events and recovery durations

We are officially in a stock market crash right now. During stock market crashes its always a great opportunity to invest in good Index based ETF’s as prices are super cheap.

I’ve done a bit of research and compared the the black swan events since 1973 and calculated the amount of days it would take to recover.

1973 Israel-Arab War- Decline -17.1%, Recovery 1475 days

1979 Iran Hostage crisis- Decline -10.2%, Recovery 51 days

1987 Black Monday- Decline -28.5%, Recovery 398 days

2001 Dot com bubble -42%, Recovery 1885 days

2001 September 9/11 attacks- Decline -11.6%, Recovery 15 days

2003 SARS virus- Decline -14.1%, Recovery 40 days

2007/08 Financial Crisis- Decline -56.8%, Recovery 1022 days

2020 COVID-19- Decline -29.5% so far, Recovery Unknown

The data here are just approximate. Crashes below 10% was ignored to simplify the analysis.

Unlike other crashes this is a pandemic, the recovery to this will be far different from the other scenarios. There is lack of similar events to compare an analysis in the past 100 years. But I hope this gives you a rough estimate to look for if you do plan on investing right now.