Search Results for: drawdown

Global Equities – MSCI AC World Mid- and Large-Cap Index Are global equities poised for a drawdown at some point? Image: Gavekal, Macrobond

S&P 500 Equity Risk Premium (Using Breakevens) The S&P 500 equity risk premium remains much lower than it was in March 2020. Is a drawdown on the horizon? Image: Morgan Stanley Research

Bear Market – Comparing Speed of Decline to Speed of Recovery Of the 10 stock market drawdowns of about 30% since 1920, the median time needed to recover half of losses, was half the duration of the decline. Image: CNBC

S&P 500 – 1987 vs. 2008 vs. 2020 This chart shows the percentage of stocks below their 50-day moving average vs. the 1987 & 2008 drawdowns. Image: Fidelity Investments

Valuation – Forward P/E Ratio From the valuation peak of January 2018, most P/E ratios have seen drawdowns of 20%-30%, making this feel like a bear market. Image: Fidelity Investments

60/40 Portfolio – Bull and Bear Markets This is the longest bull market for balanced equity/bond portfolios in over a century, without a 10% total return drawdown. Image: Goldman Sachs Global Investment

S&P 500 Bull Market This is the longest equities bull market without a 20% drawdown. Image: Goldman Sachs

What Are the Advantages of a Geographically Diversified Portfolio? A geographically diversified portfolio may minimize drawdowns and the amount earned from compounding may grow faster over time. Image: Bridgewater Associates, LP