Do High Return Strategies Outperform On The Downside?

Do High Return Strategies Outperform on the Downside? by Scott England, Covenant Capital Management

It is rumored that the great Albert Einstein once said that compound interest was the “greatest invention in human history.”  It is also rumored that he alternatively said that compound interest was the “most powerful force in the universe.”  Whether he made these statements or not is really a moot point.  Compound interest is certainly a means to creating wealth.

It is clear and obvious that strategies with higher returns benefit more from the power of compounding than strategies with lower returns.  You can even invest a smaller amount in a high return strategy and ultimately end up making more money than a lower return...