How the 2020 global share slump and recovery ranks in history What is city talk?
Getty Images
Stocks saw a record crash followed by a record rebound in 2020, creating some disparity between markets, as Duncan Lamont explains.
The global stock market crashed at a record speed in early 2020 (Figure 1).
On its way to a total decline of 34%, it clocked up a 30% loss in just 40 trading days.
This is faster than any global stock market crash in at least the last 48 years that we have daily data on global stock market returns for.
A record breaking rebound
Astonishingly, in the eight months since, it has rebounded by 62%. The losses from this record-breaking crash were fully recovered by 23 August, only five months after the market bottomed and while the global economy was still deep in a quagmire. Since then it has sailed even higher, most recently on the back of positive vaccine news. The global stock market is now almost 8% above its pre-crash peak.