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Life & Money

#MoneyMythMondays — Negative and Positive Returns

December 8, 2014

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#MoneyMythMondays — Negative and Positive Returns

Life & Money

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! 

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