Gold is obviously a hot topic of conversation right now because it seems like everyone is flocking to get their hands on it. Looking back at the historical price of gold in the chart below its amazing to see the huge increase in the price of gold since 2009, and if you remember back to…
Here is a snapshot of the Linkedin Poll Results on Retirement Savings… still 18 days left…
That fact of the matter is that for every 25% loss you incur—you must gain 33⅓% just to get back even!
In our equation most investors would say that they averaged 0% over the last 2 years. In other words +25% and -25% averages out to 0%.
The truth is if you go up (or down) 25% and then go down (or up) 25% your average return has been a negative 3.17%.
“There was a Chemistry professor in a large college that had some exchange students in the class.
One day, while the class was in the lab, the Prof. noticed one of the exchange students who kept rubbing his back and stretching as if his back hurt. The professor asked the young man what the matter was. The student told him he had a bullet lodged in his back. He had been shot while fighting communists in his native country who were trying to overthrow his country’s government and install a communist government.