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Drawdown

What is Drawdown?

A drawdown is the decline from a peak to a later low in the value of an investment or portfolio, usually shown as a percentage.

Why it matters

Maximum drawdown shows the worst fall an investment has suffered and helps you judge whether you could stomach it. A 50% drawdown requires a 100% gain to recover.

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General education, not investment, tax or legal advice. Read our disclosures.