I need help with question I have been thinking about, what is the best gauge to put a % on the scale of overall market suppression in a downturn?
Are you looking for the overall drawdown in the market in a downturn.
See the attached link which I like to use. It is a JP Morgan article.
I have also snipped a few graphs to show the largest downturns and also the intro year drawdowns in the markets. Generally markets have a big dip even in positive years.
Hope this helps.
Brilliant, thanks. I want this info to help with a strategy for recovering quicker in the event of a downturn. Its certain there will be several downturns over the course of a long term portfolio. I want to keep 10% in cash and put half in at a 5% downturn and the other half at a 10% downturn.