Rule #1 in investing is don’t lose money and never lose big. The chart below shows the portfolio gain needed to recover from a given loss. The hurdle gets real high the bigger your loss. A 60% loss requires a 150% gain just to get back to even.
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Jeremy Jones, CFA
Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
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