Rate Of Return
CommemorativeDuring a crash, capital preservation is the top priority, not conservatism, but a top-tier mindset.
A 50% drop requires a 100% increase to break even.
This is the hardest mathematical rule:
- Lose 10%, need an 11% gain to break even
- Lose 30%, need a 43% gain to break even
- Lose 50%, need to double to break even
- Lose 70%, almost impossible to recover
Once the principal is severely wounded, compounding interest is directly interrupted, and time stands on the opposite side.
Preserving capital means preserving the qualification for a comeback, the spark of compound interest, and future opportunities.
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