Let’s start by doing some basic math. What’s $100,000 – 10%? If you got $90,000, great! Now, what’s $90,000 + 10%? You may be tempted to say $100,000, but answer is actually $99,000. So, if you lose 10%, then gain 10%, you end up lower than where you started! Not fair right?! Loss prevention, or downside protection as we call it, is the art of minimising losses, so your money doesn’t need to work so hard to recover from periods of downward volatility. Every decade or so,…
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