I'm assuming most people focus on CAGR as a primary metric if younger and have time for their investments to grow. They may be less concerned (or unconcerned entirely) with drawdowns since ultimately growth is most important to them.
​
Others may focus on reducing max drawdowns if they're nearing retirement and can't afford to lose half their life savings in their 70s or 80s.
​
Has anyone focused on TIME TO DRAWDOWN RECOVERY? This is an interesting one to me. I realize this is most likely highly correlated with maximum drawdown, but then again it may not necessarily be. But let's say, hypothetically (exaggerated to illustrate the point):
​
Portfolio 1: same CAGR, max drawdown: 25%, time to recovery: 10 years
​
Portfolio 2: same CAGR, max drawdown: 95%, time to recovery: 2 years
​
I'm guessing more people than expected would take portfolio 2. That higher drawdown can be easier to stomach if you know it will recover more quickly than a lower drawdown that feels like it takes forever.
​
Would love to hear any thoughts or recommendations!