Big Stock Market Drop Doesn’t Normally Mean Recession

By on August 16, 2011

The Economist has produced an interesting graph showing that since 1951 stock market drops (they call it crash) of 5.5% or greater have only resulted in a recession one out of 10 times. It appears the odds favor the economy continuing to chug along after the 5.5% drop on August 8th.

Especially since gas prices are beginning to fall.

Click on graph to enlarge:

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