Capital Markets Summer 2022: Revealing Recession Patterns

I

How May Equities Perform? Revealing Recession Patterns

• Equities have historically peaked several months before recessions start and often bottom prior to the end of recessions

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II

S&P 500 Performance Around Recessions

70%

2020 (2 months)

III

50%

1981/1982 (16 months)

30%

1990/1991 (8 months)

IV

10%

Average

-10%

2008/2009 (18 months) 1974/1975 (16 months)

Cumulative Change

-30%

V

2001 (8 months)

-50%

-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 20 22 24

Months Before and After Start of Recession

Source: FactSet and Alger analysis. Data calculated monthly. Duration in parentheses signifies length of recession. The performance data quoted represents past performance, which is not an indication or a guarantee of future results.

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