The stock market has crashed 19 times in the past 150 years.1 Every crash has been unique, with different causes, durations, and severity. The Global Financial Crisis in 2008 and 2009 had a max drawdown of -57% and lasted 17 months. But within a year of reaching its bottom, the market was up 69%.2 The COVID pandemic hit a max drawdown of -34% but only lasted one month. It was up 75% a year later.2 The COVID pandemic was the fastest market recovery of any crash over the past 150 years.1
$1 invested in the stock market in 1871 would have grown to $31,805 by the end of June 2025, adjusted for inflation.1 This growth would have occurred amidst (and despite) those 19 market crashes. Even through the so-called “lost decade” of the early 2000s when it took over ten years for the market to recover from the dot com bubble, the Great Recession, and the COVID Pandemic, an investment made at the beginning of the millennium would have tripled in value by June 2025.1
Despite their differences, what all crashes have in common is that they eventually recover. It’s impossible to know how long a crash will last and how severe it will be, but they remind us that recoveries can be sharp and meaningful. Some of the strongest market moves may even happen right after deep drawdowns.
Along with staying invested through drawdowns, corrections, and crashes, TrueShares has a new portfolio tool that aims to smooth market cycles and boost market recoveries. The TrueShares Convex Protect ETF (PVEX) is designed to provide a convex return pattern. On the upside, the fund aims for capital appreciation that could potentially match or exceed that of the U.S. large cap equity, providing convexity. On the downside, the fund aims to mitigate against a meaningful portion of the risk posed by a decline in U.S. large cap equity markets.
PVEX therefore offers a new solution that may help navigate future drawdowns and their rebounds.
For more information and full disclosures, visit: https://www.true-shares.com/pvex/
