- 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
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