Stay Invested to Help Soften the Arithmetic of Loss
The stock market, it might be said, is the greatest of teachers, but attending class isn’t always fun. One of the harshest lessons the market has to impart to investors concerns the arithmetic of loss. Quite Like medical students learning about the ravages cancer can cause, investors understand the potential of portfolio losses, yet persist in hoping the lesson applies to others, never to themselves. Fact is, as the arithmetic of loss shows, a given percentage of gain is never [...]
