Required growth for recovery after a loss ⬆️

Each asset drop requires a much larger increase to return to its original value.

The deeper the drawdown, the harder it is to compensate:

🟢A 10% drop requires an 11% increase.

🟢A 30% drop already requires a +43% increase.

🟢If an asset has lost 50%, its value can only be restored with a 100% increase.

🟢In catastrophic cases of -90%, recovery will require an unrealistic +900%.

Timely record losses and manage risks — excessively deep drawdowns can make recovery nearly impossible.