nearly a quadrupling. The embargo was officially lifted in March 1974, but the higher price level largely remained and has continued to increase. This was followed by a stagflation recession lasting 1 year and 4months in the US. Peak unemployment: 9 % May 1975, GDP Decline:-3.2 %
Figure 2: Crude Oil Historical Chart( https:// www. macrotrends. net / 1369 / crude-oil-price-history-chart)
The S & P 500 in the US delivered a total return of-14.66 % in 1973 and-26.47 % in 1974. From peak to trough, the decline total-48.2 % from January 11 th in 1973 to October 3 rd 1974.
Figure 3: 1972-1978- S & P500 Historical Chart, adjusted for inflation( https:// www. macrotrends. net / 2324 / sp- 500-historical-chart-data)