From February 19th to March 23rd, the S&P 500 plummeted -34 percent. From March 23rd until time of composition, the same index climbed approximately 50 percent. Do not confuse this as a net gain. (Refer to our blog series on risk and volatility for how path dependency is important for the geometric compounding of investment…
Tag: Path Dependency
Avoiding the Zeros
Games involving strategy can be classified into two buckets: winner’s games or loser’s games. The difference is that a “winner’s game” victor utilizes superior maneuvers to overwhelm opponents, whereas a “loser’s game” victor avoids fatal errors and self-sabotage. Investing has been labeled the latter type, discussed further in a recent article titled “Avoiding the Zeros.”…