Major indices drawdowns

Last week i saw on LinkedIn a post on s&p index performance year over year, taking into account total year performance, which in that case was a simplified [(ending price-initial price)/(initial price)]*100.

But i rarely see a fundamental data to consider (to my opinion) when you're making a good risk management analysis or just a performance report.

Time under water (TUW), which is calculated until the price reach a price of "break even", or "peak to peak".

In my case, i reported the major number of days that every index has registered under water.

As you can notice, until now, Eurostoxx 50 hasn't still surpassed the price crash of 03/2000.

It means that if you are an investor that put all of his money on that asset and only in that date (so you didn't buy anymore in successive months) you're still losing money.

Obviously this data it's useful only in certain case, but generally talking, a high volatility situation can help if you're pragmatically investing every y date (so not choosing a precise timing)

PS: a last take away that can be really useful is that Dow Jones has the lowest average DD, the lowest maximum DD and the lowest annualized volatility.

May-2021