Report
How long does it take the equity market to forget a crisis?
We look at the profile of the equity market (in the United States and the euro zone) after a recession: The recovery in equity market indices is driven by an upswing in activity and earnings, and by more expansionary monetary policies; But companies may be more indebted, and therefore more fragile, and the high volatility of share prices during the crisis may lead to a lasting rise in equity risk aversion and equity risk premia. In total, we see after crises: Most often that equity market indices are persistently lower than their pre-crisis levels; With the exception of the United States after the 2008-2009 crisis, when the market returned to the pre-crisis level levels from 2013. PERs never return to the level of the 1999-2000 stock market bubble, but after the 2008-2009 crisis they quickly returned to their pre-crisis levels.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.