7th lesson: Higher gains are needed to compensate losses (see table below). Well, this is a lesson that I have to re-remember. And since I am likely to inject capital into my portfolio during times of distress, I may need smaller percentage gains to recover from my losses (in dollars terms).
Wednesday, September 30, 2009
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Equity Risk Premium in US market
Equity Risk Premium (ERP) refers to the additional return over risk-free interest rate for holding equity. ERP can be computed by taking ea...
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Year % Returns STI (Excl Dividends) Remarks 2004 6% 2005 35% Returns/Declines boosted with slight leverage. 2008: Great Recession 2006 130...
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I am thinking that the next decade may be the emerging markets's. That is, emerging markets (EM) is likely to have higher returns than t...