Part 5/14:
Historical Context for Recessions and Market Bottoms
Justin Trimmer of Fidelity mapped out past recessions in relation to the S&P 500. Analysis suggests that markets generally bottom roughly one-third into a recession. While the overall economic outlook remains uncertain—many believe a recession has been underway for two to three quarters—historical patterns indicate that stocks tend to recover before the recession officially ends. This alignment of market behavior and recession phases is crucial for anticipating future rallies.