As per usual, we are gonna toss $MSTE under the bus here yet again. now most people know the breakeven chart. if you dont ill quickly jot it down here: 10%down = 11% BE 20%down = 25% BE 30%D = 43% BE 40% = 67% 50%=100% 60% = 150% 70 =233 80 =400 90=900 100=๐๐ซ We all know this or should, compounding works both ways. this idea only gets us half way to the problem. because your money could have been somewhere else. This is the opertunity cost, the divergence between stratagies. since inception $MSTE has a -61% return (we will call it 60) so your thinking great! only need 150%.... Compare that to a much simpler shut your brain off kinda stratagy ($XEQT ) since the same time period has returned 27%. That doesnt seem like much.... but the real gap is 229%. Bench marks are import. assesing opertunity cost is is important. you dont need to compare to other people. but you should stress test against simpler stratagies. sorry mste crowd, I use mste because it is one of the most wide spread investments on the income side. It has also shown to be pretty volitile to say the least.
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