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How to Avoid Losing Large Sums of Money
This has been the largest dollar wealth destruction that we've seen thus far, particularly because bonds in 2022 have crashed just as much as stocks and even more. The biggest problem when you think about these types of assets is the negative compounding of loss. If you lose 90% on any asset, you need to make a thousand percent return in order to get your money back. So risk management is even more important than capturing all the gains.