In his piece Arends showed that Russian small caps were down 78% as of the beginning of March from the all-time highs. Since then, they’ve dropped another 40%. That stings. But in the grand scheme of things that only drops the cumulative total loss to 87% in total. As the numbers approach zero (hopefully the stock market of the 8th largest economy in the world doesn’t make it that far) you need a much bigger drop to add to the total loss. So a 40% loss only added another 10% or so to the bottom line since 2007. To go from an 80% loss to a 90% loss requires another 50% in losses. Unfortunately, when trying to catch ......
I came across Ben Carlson’s latest article where he talks about the psychology of being greedy while others are fearful. In it, there is this part that seems rather interesting:
