Decimated...
Maybe it’s not as bad as it sounds?
Bear with me.
The word originates from the military punishment used by the Roman army whereby every tenth man in a group was executed by members of his cohort.
By extension we can say that your investment portfolio is “decimated” every time it drops 10%.
But that sounds dramatic.
And, given that we can expect a 10% drop (and full recovery) every year, would likely lead to a severe case of the investment heebie-jeebies if we talked in terms of “investment decimation”.
That’s why we call it a correction – which sounds much more pleasant doesn’t it?
We are due one.
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3moThanks for sharing. This is a learning experience.
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3moThe word decimate is overused. You are 100% correct with the Roman reference. It is 1 in 10.
Founder, Managing Partner, Chief Investment Officer di Meridian | Accompagno i miei clienti nell'investimento dei loro risparmi come coach finanziario competente, autorevole e indipendente.
3moGreat post Jeremy Askew ! But be assured that clients will say that their portfolio has been "decimated" and/or is in free fall and/or is tanking or a combination of all of them.... because those are the terms mainstream media use and we are here to remind them constantly that that is not the case....just like what you said in your post..well done again!