2
 minute read

Decimated...

Written by
Jeremy Askew
Published on

Maybe it’s not as bad as it sounds?

 

Bear with me.

 

The word originates from the military punishment used by the Roman army, whereby every tenth man in a group was executed by members of his cohort.

 

By extension we can say that your investment portfolio is “decimated” every time it drops 10%.

 

But that sounds dramatic.

 

And, given that we can expect a 10% drop (and full recovery) every year, would likely lead to a severe case of the investment heebie-jeebies if we talked in terms of “investment decimation”.

 

That’s why we call it a correction – which sounds much more pleasant doesn’t it?

 

We are due one.