Market Drawdowns
1rh4SCX
1rh4SCX
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Conclusions<br />
<strong>Market</strong> drawdowns, as a driver of “regret” may play a greater role than we<br />
realize.<br />
The character of the market over the past 180 years does not seem to have<br />
changed greatly.<br />
A realistic statistical model awaits. We are unable to adequately model<br />
returns to reproduce the observed market.<br />
It would be a mistake to view the Great Depression as an “outlier”.<br />
Taking the long historical view provides insights that are valid today.<br />
Any study such as this suffers from survivor bias and the fact that we are<br />
likely to have underestimated our α exponents.<br />
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