{"id":2095573,"date":"2018-12-27T14:19:19","date_gmt":"2018-12-27T08:49:19","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2095573"},"modified":"2018-12-27T14:19:19","modified_gmt":"2018-12-27T08:49:19","slug":"annual-drawdowns-and-subsequent-returns","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2018\/12\/27\/annual-drawdowns-and-subsequent-returns\/","title":{"rendered":"Annual Drawdowns and Subsequent Returns"},"content":{"rendered":"

All major world equity indices are hugely negative for this year. But is it really newsworthy? Here’s S&P 500 with all the 220-day max drawdown points marked:
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You would soon run out of ink if you were to write up a report every time the market dropped the most in the past year. Here’s the one for the NIFTY 50:
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And just because the index dropped doesn’t mean that subsequent positive returns are around the corner. Here are the charts for subsequent 220-day returns once a 220-day max drawdown has been made:
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You have to squint really hard at the charts above to make a bull case after a drawdown. <\/p>\n

We have systematically looked at these relationships quite extensively in the past. You can find them at our Buying the Dip<\/a> and Market Timing<\/a> collections. You will notice that the key ingredient is patience – it takes time for the odds to work in your favor.<\/p>\n

Code and charts are on github<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

All major world equity indices are hugely negative for this year. But is it really newsworthy? Here’s S&P 500 with all the 220-day max drawdown points marked: You would soon run out of ink if you were to write up a report every time the market dropped the most in the past year. Here’s the … <\/p>\n","protected":false},"author":2,"featured_media":2044781,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471],"tags":[960],"class_list":["post-2095573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-insight","tag-returns","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2095573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2095573"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2095573\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2044781"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2095573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2095573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2095573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}