As the Wall Street Journal discusses today, you need larger returns to get back to where you were before your portfolio suffered a loss.
The math is simple. Start with $100. Loose 50%. You've now got $50. To get back to $100 you need a 100% return.
Of course, you can get back quicker if you save more.
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
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