Shares and property prices could take the most time to recover once the coronavirus pandemic passes, Sourced Capital claims.
The peer-to-peer lender has looked at the decline seen during the 2008 financial crisis across assets such as property, oil, precious metals and stock market indices, and assessed how long it took each to return to their respective pre-crash peak.
The main market indices such as the FTSE 100 in the UK and S&P 500 in the US took 36 and 45 months respectively, while France’s CAC 40 index took 81 months to recover back to its pre-recession peak.
It took UK property prices 72 months to exceed their pre-crash peak of £183,082, having fallen to a low of £157,806 at the end of the previous recession, Sourced Capital said.
However, the recovery time in London was just 39 months, so there are regional variations.
The analysis also found precious metals such as gold took just 18 months to recover to their peak, while oil as yet to reach its previous highs and looks set to struggle further with continuing volatility in the market.
“It’s interesting to see how various investment options bounce back in the wake of uncertainty and the different time scales of recovery required,” Stephen Moss, founder of Sourced Capital, said.
“While our research has focused on the speed of recovery, investing is certainly more of a marathon rather than a sprint, and while some options may return to form sooner, others such as property provide a more stable long-term return despite growth rates taking longer to materialise.
“Of course, the higher risk investments will yield a quicker return but they also present the greater risk and when investing, it’s always advisable to ensure you have a diverse portfolio and an investment plan that stretches years rather than months.”