If you think about it, actually you should PRAY for drawdowns, unless you are very close to retirement, and assuming you buy-and-hold an accumulating ETF.
Here’s why: An accumulating ETF constantly uses the dividends from its underlying stocks to buy more of itself (instead of paying those dividends out to you).
And it can buy twice as many pieces of itself when it is at 50 versus when it is at 100.
It is thus to your advantage if the ETF is really low for a really long time.
> It is thus to your advantage if the ETF is really low for a really long time.
As long as you don't start retirement at the beginning of one of those decade-long periods where the market is flat. It would hurt to have to start selling shares at 50 when you bought them for 100.
Here’s why: An accumulating ETF constantly uses the dividends from its underlying stocks to buy more of itself (instead of paying those dividends out to you).
And it can buy twice as many pieces of itself when it is at 50 versus when it is at 100.
It is thus to your advantage if the ETF is really low for a really long time.