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

Much of the drawdown has occurred in eastern Syria, particularly Deir Ezzour.

Read more on The Wall Street Journal

Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, thinks the trade and credit headwinds “may end up being catalysts that spark the five- 10% tier one drawdown in the S&P 500 that we have been on guard for between now and the end of the year.”

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The drawdown, with Alibaba stock down almost 3% in the past five days, could be a buying opportunity.

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It’s worth remembering that similar doji patterns in January preceded a sharp 60-point drawdown, highlighting the potential weight of this current setup.

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Fund managers headed into Friday’s sharp drawdown in their most bullish posture in eight months, according to a closely followed survey released Tuesday.

Read more on MarketWatch