Drawdowns
Drawdown protection is framed as both a financial and psychological requirement. A 70% portfolio decline can threaten both financial security and emotional stability. Deep drawdowns are often underestimated because investors view them with…
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Drawdown protection is framed as both a financial and psychological requirement. A 70% portfolio decline can threaten both financial security and emotional stability. Deep drawdowns are often underestimated because investors view them with hindsight after recoveries are visible. Many investors may capitulate near market bottoms after enduring large losses.