#MoneyMythMondays — Negative and Positive Returns
This week’s Money Myth:
“Negative and positive returns cancel each other out.”
Large losses must be offset by even larger gains. A $100 investment that reports a 50% loss in one year, needs to have a 200% gain in the following year to get you back to $100.
Here’s a WealthBar Pro Tip: Cash flow focused investing can mean reduced volatility and less reliance on price appreciation.
Read more on how to avoid taking on excess volatility through a well-diversified portfolio.
Have a suggestion or want to add to the discussion? Tweet us with the hashtag #MoneyMythMondays!
