AMAZON --- is down over 40%! 2031 Till next ATH?The drawdown visualisation is a great tool to determine the characteristic of previous and current market conditions in whatever asset you are looking it.
Here I have drawn up AMZN priced in CPI index units rather than notional US Dollar's.
For what purpose do people allocate money to equities... but to grow a nest-egg for the your future.
But timing is everything
And we can see that AMZN is currently down over 40% priced against goods/services/expenditures
Effectively you have gotten 40% poorer
(assuming 100% allocation at the top... unlikely I know ,,, but for illustrative purposes still useful to know. ..
And the point is how during a bull market, the price doesn't deviate away from the high that much. in 2022 we have already been down 60% are we facing a price reset for risk and stalling market for the rest of the decade. It has happened many times before, so we have to assume the old adage History Rhyming.