Saturday, May 14, 2022

The Story of a Crash

this article originally appeared here


This chart denotes the number of days it took for the market to recover after a 15% crash 
(see column - 'days to recover')
Chart prepared by Capitalminds

How to read?
If you invested after a 15% market fall, it took anywhere between 10 days to 1299 days (3 years+) to recover your investment and make a nominal profit.

What this means?
Invest only your Risk Capital, only that you can put away for a period of 5 years
And in the end, this is a probabilitic activity, there is no  100% certianity
Keep Emergency funds for Emergency, they are not for investing in risk assets like equity



 

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