"Deep drawdowns" refers to significant and extended drops in the value or performance of an investment or financial asset. It means that the value has decreased significantly from its previous high point. Full definition
Spitznagel argues that at valuations where the equity q ratio exceeds 0.9, the 110 - year relationship points to an «expected (median) drawdown of 20 %, and a 20 % chance of a larger than 40 % correction in the S&P 500 within the next few years; these probabilities continually reset as valuations remain elevated, making an eventual deep drawdown from current levels highly likely.» (greenbackd.com)
Spitznagel argues that at valuations where the equity q ratio exceeds 0.9 a 110 - year relationship points to an «expected (median) drawdown of 20 %, and a 20 % chance of a larger than 40 % correction in the S&P 500 within the next few years; these probabilities continually reset as valuations remain elevated, making an eventual deep drawdown from current levels highly likely.» (greenbackd.com)
Instead, the measures of his success have been limited volatility, the avoidance of deep drawdowns, restrained beta, and high alpha. (hussmanfunds.com)