The insidious aspect of dips in the market is that the rally needs to be much larger than the dip in order to recover.
For example, a 50% drop requires a 100% rally just to get back to where you started.
The insidious aspect of dips in the market is that the rally needs to be much larger than the dip in order to recover.
For example, a 50% drop requires a 100% rally just to get back to where you started.
Ok. Why is this insidious though @stramineus?
Using the definition: "operating or proceeding in an inconspicuous or seemingly harmless way but actually with grave effect."
Most people, in my experience, only think about the size of the loss and not the much larger rally needed in order to recover.
Just an observation.
aHa!! That makes sense @stramineus. Ok I think i see where you're going stunner..