Contacts
Crisis
11 august 2021
A period of sharp contraction of the economy of a particular country or region. When this contraction is global (such as the Global Financial Crisis of 2008-2009), the crisis is called global. In times of crisis, we often see a serious decline in the prices of market indices and shares as their component.
Example:
One of the most emblematic crises of the last 80 years was the Global Financial Crisis in 2008-2009. The level of one of the leading indices in the USA - S&P 500 - uniting the shares of over 500 large companies - reported a decline of 47.8%*. In just one year from the bottom, however, the index recovered with a growth of 52.2%, and 5 years later the growth reached 146.1%
*The example is with data for the S&P 500 and inflation in the USA. Source: Yale University Database http://www.econ.yale.edu/~shiller/data.htm
