Monday, November 2, 2009

Its always harder to dig out of the hole

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.