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Drawdowns from Market Losses Work Geometrically Against You Thumbnail

Drawdowns from Market Losses Work Geometrically Against You

Investment Drawdowns from Market Losses Work Geometrically Against You

Losses don’t scale linearly—they scale exponentially in how they hurt compounding.

A -10% loss requires +11.1% to recover

A -20% loss needs +25%

A -50% loss needs +100%

A -90% loss needs +900%

Why? 

Because you’re always growing from a smaller base.

That’s the geometric trap: each deeper loss shrinks the capital available to compound. 

You're not just losing money—you're losing the very engine of growth.

It's why ASYMMETRY® emphasizes risk management first by predetermining exits in advance, monitoring portfolio risk in real time, and hedging with convexity when there's an edge.