drawdown

American  

[draw-doun] / ˈdrɔˌdaʊn /

noun

1. a lowering of water surface level, as in a well.

   Drawdowns of up to 90 feet have been recorded in many municipal wells in the area.

2. a reduction or depletion.

   The president announced a drawdown and eventual departure of troops from the region.

   The unprecedented drawdown of natural resources poses enormous challenges worldwide.

3. Stock Exchange. a drop in the value of a stock from its peak to its lowest level over a certain period, usually expressed as a percentage of the peak value.

4. British. the withdrawal of part of an investment, such as a pension or retirement fund, for use as income.

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drawdown British  

/ ˈdrɔːˌdaʊn /

noun

1. a depletion or reduction, for example of supplies

2. a continuous decline in an investment or fund, usually expressed as a percentage between its highest and lowest levels

3. the intentional draining of a body of water such as a lake or reservoir, to a given depth

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drawdown Scientific  

/ drô′doun′ /

1. A lowering of the water level in a reservoir or other body of water, especially as the result of withdrawal.

2. The difference in elevation between the level of water in a well and the level of groundwater in the area in which the well is located.

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Etymology

Origin of drawdown

First recorded in 1780–90; draw + down ¹

Example Sentences

The drawdown in the market has hit many tech and data center infrastructure stocks hard, Ellerbroek said.

From MarketWatch

“If that capital does not get spent or invested the way that it’s been announced, it will be a big negative drawdown for the markets.”

From MarketWatch

This isn’t a call for an immediate or dramatic drawdown.

From Barron's

Looking at prior instances in the past decade where Nvidia’s stock traded below a forward P/E of 25 times, the average subsequent one-year return has been more than 150%, he said, and there have been “zero instances of a negative drawdown when held over that period.”

From MarketWatch

Indeed, McElligott provides the table below to show that its common for the momentum factor to experience a drawdown in December, averaging a pullback of 1.1% since 1995.

From MarketWatch