I was putting together some presentation materials and wanted to demonstrate why controlling the sequence of market returns can be so critical for an investor, especially one who is planning for a long-term goal like retirement.  I think the following image sums up the concept nicely: an “unlucky” investor whose first decade of retirement is made up of 2000-2010s instead of 1990-2000s is going to have a hard time staying solvent unless they drastically change their withdrawal plans or were fortunate to take a tactical approach and limit their losses (even at the cost of giving up some of their gains).
The Sequence of market Returns

Corey is co-founder and Chief Investment Officer of Newfound Research, a quantitative asset manager offering a suite of separately managed accounts and mutual funds. At Newfound, Corey is responsible for portfolio management, investment research, strategy development, and communication of the firm's views to clients. Prior to offering asset management services, Newfound licensed research from the quantitative investment models developed by Corey. At peak, this research helped steer the tactical allocation decisions for upwards of $10bn. Corey holds a Master of Science in Computational Finance from Carnegie Mellon University and a Bachelor of Science in Computer Science, cum laude, from Cornell University. You can connect with Corey on LinkedIn or Twitter.