Volatility is an inherent part of investing — markets fall and they rise. Fortunately, major stock indices like the S&P 500 (S&P) have historically posted strong long-term gains following declines. But what's changed in recent years is how quickly they bounce back after a drop.
Take the COVID-19 crash in early 2020. Markets dropped hard and fast, but they also recovered with astonishing speed. In just four months, the S&P had climbed all the way back, marking the fastest recovery from any market crash in the past 150 years.
