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How far we have come

March 9 marks the 10-year anniversary of the market’s bottom during the global financial crisis. U.S equities, measured here by the Russell 3000 Total Return index, fell as far as 55.7% from its previous high. The total drawdown period lasted 1,116 days between Oct. 9, 2007, and March 13, 2012, with the index needing 760 days to get back to where it started from the bottom. While what followed was the longest bull run in history, it was not without its faults. Average drawdowns in 2015 and 2016 were -3% and -3.6%, respectively, and 2017 was a strong year for equities, but that momentum could not be carried into the following year.

Growth stocks as measured by the Russell 1000 Growth index have fared the best since the bottom as $1 million invested at the end of March 2009 would be worth about $4.82 million as of Thursday’s close, or 17% annualized. Value stocks have lagged their growth and momentum counterparts in the latter half of the rally, but the tide appeared to raise all ships rather evenly in the early days.