$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.
Source: Saxo Bank
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.
@jazziyoung I think still everything is on the cards, in that respect.
@jazziyoung Completely agree with you here, it must have been traumatic for individuals holding the majority of their savings in the market ....as 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.
@joeyhirendernath Cautious thinking always pays off - in good and in not so good times.
its not done until $AAPL falls, more pain ahead
@growthinvesting Highly likely, the trend stays consistent with previous drawdowns up to now.
midway...damn. Not sure how you model such a extreme scenario as base case. We shall see.
@rihardjarc Follow the trend ...
Charts like this help keep us honest. Its good to be reminded of the possibility that a drawdown like 1929-1932 could happen again.
@nathanworden Keep your feet always on solid ground.
Author
Related
Already have an account?