drawdown

[draw-doun]

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.

drawdown

/ 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

drawdown

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.

Word History and Origins

Origin of drawdown¹

First recorded in 1780–90; draw + down ¹

Example Sentences

At the same time, he added, Nvidia’s 10% drawdown in the past month “means the stock now has a slightly lower bar to clear post-earnings.”

Read more on The Wall Street Journal

Futures tracking the tech-heavy Nasdaq 100 were 0.6% higher on Monday, suggesting investors see a recent drawdown as a buying opportunity.

Read more on Barron's

In the three months leading up to last week’s drawdown, roughly 75% of index returns in the U.S. were derived from just five stocks.

Read more on MarketWatch

“Of course it is likely there’ll be, you know, a 10% to 20% drawdown in equity markets sometime in the next 12 to 24 months,” Solomon said at the event.

Read more on The Wall Street Journal

“In a true bubble you don’t have some of the more important companies in the theme in a 24% drawdown.”

Read more on Barron's