Todays study follows analysis on the Post-War Recession Start Dates. We evaluate the price action the 12 months before Start of Recession and 12 months after Start of the Recession.
What we can easily evaluate that once and IF a Recession is confirmed we have about 5.8% more (ON AVERAGE) to the downside and the next 2 months are most volatile.
From then on we can see that within 10months (the Median length of a Recession) the Market comes close to full recovery.
DATA FROM FOLLOWING START OF RECESSION PERIODS 11/30/1948 07/31/1953 09/03/1957 05/02/1960 12/31/1969 11/30/1973 01/31/1980 07/31/1981 07/31/1990 04/02/2001 12/31/2007 03/02/2020