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These chart show the value of SPY in 1996 and 2009

spy investment 1996

spy sold in 2009 trough

Please refer to the scenario (screenshots in the link above) where someone purchased 1 share of the market in 1996, and sold at the trough in 2009.

The trough of 2009 "blew out" the market gains since 1996 as seen in the screenshots.I do not have a vernacular for investing. Is there a term that refers to this scenario? I do not think this is considered "underwater" since the market was above the 1996 purchase price the whole time of 12-13 years until the 2009 market crash.

My question is : what do we call this 12-13 year timeframe in investing?

I want to know for every market decline, on average, how many years of gains did the market give up. If I knew the term/word/vocabulary from the scenario above, it would be easier to search for the answers that I want.

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  • Can't you just do this quickly in excel yourself?
    – AKdemy
    Jul 1 at 8:09
  • Yes I can. I did it in Python. But what do I call this period of time? The stock market gave up 12 years of gains. What do you people call this period of time?
    – the_muffin_man
    Jul 1 at 8:13
  • I'd search for terms like drawdown duration, drawdown length etc. Not sure there is a clear term that is defined uniquely for this (there exist almost infinite ways to describe data that can be interesting to someone). However, it may be worth to state what answer you want? As of now, it seems you computed it yourself, so you know the number. Insofar it's not clear to me what exactly is missing?
    – AKdemy
    Jul 1 at 18:22
  • I computed this myself for one situation.
    – the_muffin_man
    Jul 3 at 6:18
  • Because we have a word for "drawdown" we can compute average drawdown length. What is not computed is "average blowout period when looking at a trough"
    – the_muffin_man
    Jul 3 at 6:19

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