White Paper — Managing Expectations: Drawdown Scenarios and Swan DRS Performance Analysis
Swan Research — Innovative Thought Leadership
In the midst of a bull market, investors tend to forget that markets can and do sell off. The longer markets go up, the more surprised investors are when markets eventually go down. Swan Global Investments believes that it is essential to understand and accept that market downturns are a natural part of investing. Moreover, Swan’s Defined Risk Strategy (DRS) was designed so that elements of it could protect and potentially even profit during market downturns. If markets never sold off, there would be no reason to hold the Defined Risk Strategy.
This white paper discusses the following:
- Define key characteristics of every market drawdown: Speed, Magnitude, and Duration
- Explore different variables that impact the performance of the DRS during drawdowns
- Analysis of historical examples of both favorable and unfavorable drawdown scenarios for the DRS Select Composite since 1997
Read the full paper below: