Reported 2 days ago
Identifying winning stocks is tough, but holding onto them can be an even greater challenge. Research shows that even the best stocks often undergo significant declines, with median maximum drawdowns reaching 72%. While a diversified portfolio, like the S&P 500, offers less volatility and shorter recovery times, the reality is that many stocks fail to ever regain their peak prices. Thus, investing in top performers may lead to painful periods of loss, reinforcing the adage that the stock market requires both courage and patience.
Source: YAHOO