Strategies an investor could use to avoid major drawdowns would be to either abandon this type of strategy entirely when the SP 500 or another major index is below a long term moving average, or hedge positions using one of the methods I profiled here which detail short ETF strategies for hedging long equity positions. (scottsinvestments.com)
Reasoning that, because it fluctuated daily, water vapour was continually recycling itself in and out of the atmosphere, he turned his attention to carbon dioxide, a gas resident for a long time in the atmosphere whose concentration was only (at that time) dramatically changed by major sources such as volcanoes or major drawdowns such as unusual and massive episodes of mineral weathering or the evolution of photosynthetic plants: events that occur on very long, geological timescales. (skepticalscience.com)
Perhaps in periods like the 1990s when the stock market roars ahead without major drawdowns (such as experienced in 1973 - 1974, 2000 - 2002, and 2007 - 2009), you are rewarded for investing in the best of the «good companies» regardless of price. (euclidean.com)