Daily Archives: April 30, 2021

What I Have Been Reading – April 2021

Stock Market Crashes During Economic Booms The higher real GDP growth goes, the higher average annual stock market returns tend to go. The highest growth with a down stock market came in 1941 when GDP was up double digits year over year while the S&P 500 finished the year down almost 11%. This was an instance in which investors were spooked from World War II. Otherwise, stocks have generally seen strong returns when economic growth is so high. In seven out of the 11 years when real GDP growth was 8% or higher, the stock market was up double digits. So it’s relatively rare for the stock market to fall […]