One of the most depressing things about big declines is how much upside it takes to regain losses. As shown in the chart below, while the S&P 500 is down 37% from its highs last October, it will now have to go up 60% to get back to those levels.
Comments
Damn the laws of algebra!
Would you guys want to weigh in on how much downside needs to be avoided in an average bear market in order to capture only half of the upside during the bull market?
Damn the laws of algebra!
Would you guys want to weigh in on how much downside needs to be avoided in an average bear market in order to capture only half of the upside during the bull market?
Posted by: APB | October 08, 2008 at 03:39 PM
It is a good thing if... you put in more money! That new money will go up 60%!
Posted by: Sia | October 08, 2008 at 08:37 PM