Calendar Year S&P 500 Returns in Perspective

2008 has been a year that many would like to forget. From a 39%+ decline in the S&P 500 to a nearly 50% fall in the price of crude oil (more than 70% from highs in July) to declines in the prices of nearly all fixed income instruments (except Treasuries), it has been a tough year. Below, I have compiled a list of the ten worst calendar year returns for the S&P 500 Index with performance for the next year and annualized five year returns shown in the following columns.

Although, every situation is different a couple of items are clear. First, the calendar year decline in 2008 is historic (likely the second largest ever) and second, interestingly, after each of these largest calendar year declines the annualized five year returns have been positive and in many cases sharply higher thereafter.

Worst S&P 500 Calendar Year Returns (click to enlarge):

Comments

[WebWatcher:]

Another seemingly interesting statistic, well, it's basically nonsense or common sense (downturn stops, comes a certain upturn). More importantly, each time there is a different cause, particularly this time. This kind of stat doesn't help anyone.

2008 Dec 31 09:14 AM

[peterthepai...:]

1930...1973...2001...n... good...

2008...where angels fear to tread...

2008 Dec 31 10:49 AM