"Bank Panic and Stock Market: What Investors Need to Know"

An analysis of the US stock market's reaction to past banking panics suggests that the S&P 500 could beat inflation by 8% over the next 12 months. While stocks declined in the immediate wake of past crises, they almost always recovered quickly, with the market being well above where it stood before the crisis on average a year later. The "plunge followed by quick recovery" pattern is typical of the stock market's reaction to geopolitical and economic crises, not just bank panics.