Bear Market Losses – A Dangerous Illusion
The article discusses the misleading perception of bear market losses, emphasizing that while bear markets may seem manageable in percentage terms, they can have severe long-term impacts on investment portfolios. It highlights the asymmetry between gains and losses, noting that significant losses require disproportionately larger gains to recover. The author argues that many investors fail to understand the true cost of bear markets, often leading to panic selling and missed recoveries. The piece stresses the importance of recognizing the real damage caused by market downturns beyond just percentage declines.
ZeroHedge·