Nifty vs Dow Jones: Remember the Great Recession? Known as one of the worst economic downturns in US history, it lasted from December 2007 to June 2009. It was on September 29, 2008 that the Dow Jones plunged 7 percent, causing losses to investors in a very short time. In the next 20 days, the US market had fallen another 20 percent.
The economic crisis caused a decline in economic activities and left people without work. The financial crisis literally destroyed the US economy and the world economy as well. Almost all countries were affected by the economic recession. 14 years after the Great Recession, which was the most severe economic downturn in the United States since the Great Depression of the 1930s, the American economy is entering recession again.
According to a report by Zee Business channel, India’s market is in a better position than the US market after 14 years of recession. A quick comparison between the returns generated by Dow Jones and Nifty50 showed that the latter has always comfortably outperformed the former in terms of returns.
Nifty50 in last 14 years has always given positive return than Dow. The research showed that while the Dow delivered 2.9 times return, the Nifty50 advanced 4.4 times over 14 years. In terms of CAGR, Dow generated a moderate return of 7.7% while Nifty provided a magnificent return of 11.1% to investors.
These 14 years of solid data will open your eyes…
What has changed in the 14 years from the 2008 recession to now?
in 14 years #DowJones how to move forward #Nifty ?
see it #ZeeBusiness की EXCLUSIVE RESEARCH@AnilSinghvi_ @ArmanNahar @deepdbhandari #Stock Market pic.twitter.com/X8lhFeFr5m
— Zee Business (@ZeeBusiness) September 29, 2022
In terms of annual returns since 2008, the Nity50 has again outperformed the US market every year. In the year since the 2008 crash, the Dow had returned a negative 6%. Contrary to this, the Nifty gained 29% in the same period.
In two years since the crash in 2008, the Dow again underperformed the Nifty as it advanced only 5% while the latter delivered a strong return of 57%. In three years since the Great Recession, the Dow delivered a tepid return of 6 percent, while the Nifty rose 29 percent.