From Forbes:

You can add market crashes to the list of life's certainties. According to a new article in the Financial Analysts Journal, stock-market reversals of 50% or more are virtually guaranteed every 100 years.

Authors Guofo Zhou and Yingzi Zu use some complex math based on the random-walk theory to show that the odds of watching half your liquid net worth evaporate are roughly similar to those of another major life event: death.

... Leverage, of course, just makes things worse. Or maybe that's not so obvious to everyone. The authors note that financial firms tend to blow up...

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