Stress Testing ONDS: Historical Drawdowns and Macro Risks
Every seasoned investor knows that market shocks are inevitable. What matters is the depth of the hit. Historically, across 7 major crises, Ondas (ONDS) absorbs an average drawdown of -38% vs. the S&P 500’s average decline of -17% over the same events.
If you are an investor in ONDS stock, you might be asking: if the macroeconomic environment fractures, how far can this stock actually fall?
One of the ways to understand this is to simply see how the stock has performed during past market crashes.
How Does It Handle Rate & Valuation Shock?
Summer-Fall 2023 Five Percent Yield Shock (Jul 2023 to Dec 2023)
- Strong economic data forced markets to abandon rate cut hopes. The 10-year yield breached 5% on October 19, driven by record issuance.
- Higher rates repriced yield-sensitive sectors like utilities and REITs. The selloff ended in mid October when CPI prints signaled that rates had peaked.
ONDS stock experienced -80% drawdown during this event, compared to -9.5% for the S&P and -17% for bonds.
What Happens During Credit & Liquidity Crises?
2023 SVB Regional Banking Crisis (Feb 2023 to Jul 2023)
- SVB’s long-duration Treasury portfolio was destroyed by rising rates. A March 8, 2023 loss disclosure triggered an instantaneous bank run accelerated by social media.
- The FDIC seized SVB, Signature, and First Republic. Contagion was contained through deposit backstops and the Fed’s Bank Term Funding Program emergency liquidity.
ONDS stock saw -60% drawdown vs -6.7% for the S&P and -4.3% for bonds.
How It Fares During Sovereign & Geopolitical Risk?
2025 US Tariff Shock (Feb 2025 to Jun 2025)
- The Trump administration announced 145% tariffs on Chinese imports on April 2, 2025, representing the most aggressive trade action since the 1930s.
- Equities and the dollar fell simultaneously, signaling lost confidence. Supply chain disruptions and small-cap input inflation drove broad declines, affecting nearly all sectors.
The drawdown for ONDS stood at -53% compared to -19% for the S&P and -3.8% for bonds.
Past Market Shock Drawdowns Summarized For ONDS
| Shock Event | S&P | Bonds | Sector | Stock |
|---|---|---|---|---|
| Q4 2018 Fed Policy Error / Growth Scare | -19% | -2.2% | -24% | None |
| 2020 COVID-19 Crash | -34% | -0.7% | -31% | -7.7% |
| 2022 Inflation Shock & Fed Tightening | -24% | -35% | -33% | -51% |
| 2023 SVB Regional Banking Crisis | -6.7% | -4.3% | -5.1% | -60% |
| Summer-Fall 2023 Five Percent Yield Shock | -9.5% | -17% | -10% | -80% |
| 2024 Yen Carry Trade Unwind | -7.8% | -1.2% | -17% | -15% |
| 2025 US Tariff Shock | -19% | -3.8% | -26% | -53% |
[1] Q4 2018 Fed Policy Error / Growth Scare: Powell’s hawkish comments and trade war fears triggered the worst December since 1931.
[2] 2020 COVID-19 Crash: Pandemic lockdowns caused history’s fastest bear market before massive stimulus drove recovery.
[3] 2022 Inflation Shock & Fed Tightening: 9.1% CPI forced aggressive rate hikes, crushing both stocks and bonds simultaneously.
[4] 2023 SVB Regional Banking Crisis: SVB’s rate-driven bond losses triggered a social-media bank run, seized by FDIC.
[5] Summer-Fall 2023 Five Percent Yield Shock: Strong economic data pushed 10-year yields to 5%, compressing yield-sensitive sector valuations.
[6] 2024 Yen Carry Trade Unwind: BOJ rate hike unwound yen carry trades, briefly crashing tech stocks globally.
[7] 2025 US Tariff Shock: 145% China tariffs crashed equities and the dollar on supply chain disruption fears.
So What Can You Do For Your Investments?
Panic is a failure of preparation. When a Rate & Valuation Shock shock hits, ONDS will contract predictably. Recognizing this behavior as a mathematical feature rather than a flaw allows investors to avoid selling at the exact wrong moment.
Incorporating a rule-based and diversified approach, such as the Trefis High Quality Portfolio (HQ), ensures your capital is protected enough to ride out these inevitable structural resets. HQ has returned > 105% since inception.