Invest at Market Peaks in Asia and It Could Take a Decade to Recover
- Imagine you managed to invest in Asia ex Japan at an absolute market peak
- How long would it take until your initial investment would be recovered?
- If you invested at the peak in December 1993, you’d have to wait through both the Asian Financial Crisis and the US Dotcom Bubble
- By March 2006, you’d start to see some return on your investment
- 147 months = 12.3 years!
- If you invested at the peak right before the Global Financial Crisis in October 2007, it would have taken 90 months to recover
- False start: Right when you’d recover in April 2015, the market would immediately dip until June 2017
- If you were to invest in Asia ex Japan at a market peak
- It could take more than a decade until your investment start to yield any return
I got inspired to do this chart after I saw the below tweet from Michael Lebowitz.
When this market does break you may be waiting a long time to get your money back. Ignoring history, risk levels and valuations has its consequences. pic.twitter.com/JaidL1SMjR
— Michael Lebowitz (@michaellebowitz) May 25, 2018
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.