Earlier this week, on March 23rd, we wrapped up the best 1-year return in the history of the S&P 500. After stocks bottomed on March 23rd, 2020, the S&P 500 index returned nearly 75% one year later.
As our featured chart above shows, that is the best rolling 1-year return for the index since its inception in 1957; and if when back-calculate the index to 1930, it’s the best return since the rebound after the crash during the Great Depression.
I would note, however, that even though this was a truly historic run, it is a bit misleading. This is because it specifically measures the return one year later from the very lowest point stocks reached during the sell-off, and it lacks context. If, for example, we were to calculate the performance over the past 13 months instead, the S&P 500 has gained a more modest 17%.
This is intended for informational purposes only and should not be used as the primary basis for an investment decision. Consult an advisor for your personal situation.
Indices mentioned are unmanaged, do not incur fees, and cannot be invested into directly.
Past performance does not guarantee future results.