In the first quarter global equity markets fell by 20%. Since then we have experienced a 27% rise up to the end of the third quarter, leaving global markets just into positive territory. In total, this represents a +48% increase from the lowest point on the 23rd March, giving 2020 it’s place in the economic history books as one of the sharpest drawdowns (ending the longest bull-market) and quickest recoveries on record. In this article, we show that global equities took just 141 trading days to return to the previous heights reached in mid-February, compared to an average of around 1,000 trading days for other bear markets to reach their pre-crisis level.

The key point to note here is that no market cycle is the same and certainly the COVID-19 pandemic has been incomparable in terms of its impact on global equity markets. This article investigates the recovery and its implication for investors.

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