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.
ASYMMETRY® Observations 