# Market Crash Strategy Cuts Recovery Time

> 60/40 portfolio strategy recovers from crashes in half the time.
- Title: Market Crash Strategy Cuts Recovery Time · The Motley Fool
- Summary: 60/40 portfolio strategy recovers from crashes in half the time. A 60/40 stock-bond portfolio with rebalancing recovers from 20% market drops in 11 months…
- Keywords: s&p 500, nasdaq composite, 60/40 portfolio, bond rebalancing, market crash recovery, j.p. morgan, vanguard bond market etf, vanguard sp 500 etf, finance, money, Market, Crash
- Source: The Motley Fool — https://fool.com/investing/2026/10/17/if-stock-market-crash-is-coming-history-says-this
- Author: Adam Levy
- Published: 2026-10-17T17:15:00+00:00
- Read time: 1 min
- Topics: s&p 500, nasdaq composite, 60/40 portfolio, bond rebalancing, market crash recovery, j.p. morgan, vanguard bond market etf, vanguard sp 500 etf, finance, money
## Market Bull Run
The last four years pushed s&p 500 116% higher while nasdaq composite rose 156%.
## High Valuations Risk
Stock market valuations are particularly high and unsustainable without fast earnings growth or price drops.
## Market Crash Inevitability
Stock prices crash 20% or more in the future due to market cycles.
## 60/40 Portfolio Strategy
A 60/40 stock-bond portfolio with rebalancing recovers from 20% drops in 11 months.
## S&P 500 Recovery Time
S&P 500 takes 24 months to recover from 20% drops even with dividends reinvested.
## Rebalancing Benefits
Rebalancing buys stocks when they drop and sells when they rise for quicker recovery.
## Bond Performance
Bonds produced positive returns in 21 of last 25 years when s&p 500 declined.
## Current Bond Opportunity
Vanguard total bond market etf offers 5.5% yield to maturity with $389.30b aum.
## Key takeaway

A 60/40 stock-bond portfolio with rebalancing recovers from 20% market drops in 11 months versus 24 months for S&P 500.