Learn: Drawdowns, Explained with Data

This library explains drawdowns with data: what they are, how the biggest declines rank, how DrawdownAlerts scores their severity, and where today's valuations sit versus each stock's own history. Every guide is built on daily price history across the assets we track.

Updated Daily

Biggest Drawdowns Ranked

Hundreds of tracked stocks and cryptocurrencies ranked by drawdown depth and duration, recomputed daily from the latest market data.

Stocks Below Historical Valuation

Tracked stocks ranked by where today's P/S and EV/EBITDA ratios sit within each stock's own record, updated daily.

What Is a Drawdown?

The percentage decline from an asset's all-time high: definition, formula, and real examples.

S&P 500 Drawdown History

Every significant S&P 500 drawdown since 1985 with depth, duration, recovery time, and Severity Score.

Drawdowns vs Corrections vs Bear Markets

Clear definitions and key differences between the three terms, with historical examples and data.

Maximum Drawdown vs Severity Score

How the Drawdown Severity Score differs from maximum drawdown (MDD), and when to use each metric.

The Drawdown Severity Score

The proprietary 0-12+ scale that measures how statistically unusual a decline is versus an asset's own history.

Methodology

Full transparency on how the Severity Score is calculated: data sources, statistics, and score interpretation.

Glossary

Definitions of key drawdown terms: maximum drawdown, peak-to-trough, recovery time, severity zones, and more.

Why Markets Spend Time Below Their Highs

The S&P 500 has traded below a prior high about 90% of the time, and which severity levels are historically rare.

DrawdownAlerts provides historical data analysis, not financial advice. Past performance does not guarantee future results. Always do your own research before making investment decisions.