Risk
Underwater period
Any stretch of time during which a portfolio is worth less than its previous high.
How it works
An underwater chart plots the distance below the running peak, so it sits at zero at every new high and dips whenever the portfolio is recovering ground.
It is the most honest single picture of what holding something felt like, because it removes the upward slope that flatters every long-run chart.
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Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.