What is a drawdown chart? Effectively, the chart shows the peak-to-trough decline in the value of an investment or trading account over a specific period. It is used in finance to analyze the performance and risk associated with investments. Through the graph, you can see how long the drawdown lasts, aka months to drawdown, and how long it takes to peak, aka months to recovery (always greater than the drawdown itself).

Because these assets increase in value over time, whenever the graph hits zero that indicates the relative peak, and then when it falls, this shows downward deviation from that peak. So, theoretically if a stock remained in free fall off its high, it would be in a consistent drawdown period with no

Exiting the recession, it took 2-years for long-dated bonds to bounce. As QE (quantitative easing) was slowed into ‘13, we see another drawdown that took ~2.5 years to recover. Recently, the drawdown is reflective of the effects of the quickest rate hike in history resulting in the extended drawdown.

Goldman Sachs pointed out its latest Marquee client poll suggested most investors thought the end of the Treasury market selloff was near.