Capital Markets Summer 2022: Revealing Recession Patterns
Dissecting Drawdowns What’s Priced In?
• Some areas of the stock market are discounting a recession more than others, based on historical drawdowns ‒ Small caps and growth stocks seem to be pricing in a recession more than other areas of the equity market
Average Stock Drawdowns
Recession Average Current
Russell 1000 Growth
Source: J.P. Morgan. As of June 2022. Based on 12-month drawdowns. Recession average uses past four recessions.
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