Todor Kostov's avatar
$6.9m follower assets
The S&P 500 $SPY drawdown
According to the team at Saxo Bank, The S&P 500 $SPY drawdown continues to linger. We are currently in the midst of the 6th worse US equity drawdown since 1928 and probably midway through it.

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Source: Saxo Bank

Jazzi Young's avatar
Every time I see a chart that includes the 1929 - 1932 drawdown, I break out into a cold sweat.
Imagine being a buy and hold investor of a market index fund when the index declines by 89.2%. The GFC drawdown was traumatic enough.
Todor Kostov's avatar
@jazziyoung I think still everything is on the cards, in that respect.
Joey Hirendernath's avatar
@jazziyoung Completely agree with you here, it must have been traumatic for individuals holding the majority of their savings in the market I am getting older I am realising how important it is to distribute your savings into different assets/pots. I keep contributing to my emergency fund because if Covid thought us one thing nothing is certain.
Todor Kostov's avatar
@joeyhirendernath Cautious thinking always pays off - in good and in not so good times.
Modern Growth Investing's avatar
its not done until $AAPL falls, more pain ahead
Todor Kostov's avatar
@growthinvesting Highly likely, the trend stays consistent with previous drawdowns up to now.
Rihard Jarc's avatar
midway...damn. Not sure how you model such a extreme scenario as base case. We shall see.
Todor Kostov's avatar
@rihardjarc Follow the trend ...
Nathan Worden's avatar
Charts like this help keep us honest. Its good to be reminded of the possibility that a drawdown like 1929-1932 could happen again.
Todor Kostov's avatar
@nathanworden Keep your feet always on solid ground.



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