Wednesday, September 30, 2009

7th lessson

7th lesson: Higher gains are needed to compensate losses (see table below). Well, this is a lesson that I have to re-remember. And since I am likely to inject capital into my portfolio during times of distress, I may need smaller percentage gains to recover from my losses (in dollars terms).

USD Depreciation and US Treasury Bond Yields Rising

 Last Thursday and Friday, US dollar (USD) has depreciated against major currencies such as Euro, Yen. On Friday, USD even depreciated again...