That would be about a 31% drawdown and one way of looking at things. I'll probably worry about Amazon if it gets much below 1600, because that's roughly a 20% DD. Nothing technical or fundamental, just a little outside its normal range. Here's the drawdown curve of Amazon: it's spent most of it's life in drawdown, just like most stocks. Four 20% DDs, and one each 50%, 60%, and 90%! Hard to sit through those last three.
Here's the drawdown curve of Amazon: it's spent most of it's life in drawdown, just like most stocks. Four 20% DDs, and one each 50%, 60%, and 90%! Hard to sit through those last three.