Thursday, March 26, 2009

Investment Math

When stocks go down 20% & then up 20% are you back to even?

No you're not, assume have $1000 & they go down 20% you have $800, up 20% or $160 you have $960.

Let's go the other way: $1000 becomes $1200 but down 20%($240) you get to $960.

How about 50%; $1000 to $500 then to $750 other case $1000 to $1500 down to $750.

Doesn't seem fair does it?

“If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.” Benjamin Franklin

“There's a lot of evidence you can sell people on tax increases if they think it's an investment” Bill Clinton

Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows. Jim Rogers

mathematics (n) the abstract science of number, quantity, and space. Mathematics may be studied in its own right ( pure mathematics), or as it is applied to other disciplines such as physics and engineering ( applied mathematics). • [often treated as pl. ] the mathematical aspects of something : the mathematics of general relativity.
ORIGIN late 16th cent.: plural of obsolete mathematic [mathematics,] from Old French mathematique, from Latin (ars) mathematica ‘mathematical (art),’ from Greek mathēmatikē (tekhnē), from the base of manthanein ‘learn.’

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