Invest $100

>invest $100
>price goes down 10%
>have $90
>price goes up 10%
>have $99
where the fuck did the other dollar go?

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jews

So the price went from 100 to 99...u lost the dollar to someone smarter than you

To a jew

and if you reverse the order
>invest $100
>price goes up 10%
>have $110
>price goes down 10%
>have $99
what the fuck it happened again

Why did it go to only 99 if 100% of the total is 100?

>how do percentages work
>what is compounding
>math is jewish

Well that's just the opposite mistake. why did you move eleven steps for a ten percent change when one hundred percent is ten steps. you are moving goalposts.

middlemen.
not only in this example.
one, and often more are present between the producer and purchaser.

I'm literally freaking out.

The hidden tax more sinister than inflation

Is 99 because is takes 10% from 110 (11) not 100 (10)

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>t.

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>price goes down 10%
>price is 90% of original
>then price goes up 10%
>then price is 110% of original

0.9 * 1.1 =/= 1

3 men enter a restaurant for lunch
Lunch is $10 each, bill comes to $30
Manager knows these guys, takes $5 off their total bill
Waiter can't figure out how to split $5 three ways, so he pockets $2 and gives each man back $1.

9 x 3 = 27. This means each man paid $9 for his meal.
27 + 2 = 29 The waiter has 2 in his pocket.

Where is the other dollar?

this. i literally and unironically can't even rn

You stupid frog, the price went up 10% compared to 90, not 100. An increase from 1 to 2 is a 100% increase, from 100 to 101 it's 1%.

musk, bezos, someone better than you user

You got more presidents now.

holy shit I fuckin hate this country

I'm freaking out a little

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>This means each man paid $9 for his meal.
nope. the problem comes from "subtract 5", this means each guy is owed back $1.67 so when you return $1 to each, each man has actually paid $9.33.

The other dollar didn't go anywhere, it's a phenomenon adjustments due to percentages rather than numerical values. 10% =/= $10

This is known as beta slippage, it can go both up and down. In stocks this often results in high volatility stocks having a more difficult time increasing value long term. Low volatility etfs were created specifically due to the better risk adjusted return.

Daily leveraged etfs are especially susceptible to beta decay because the balances are rebalanced daily. This can result in a 2X daily leveraged etf collapsing and skyrocketing in price far beyond an investment on margin that also has 2X leverage. Provided that the leveraged etf has a behavior to trend upwards the beta-slippage usually ends up in the investors favour. Studies have found that daily leveraged value between 2 and 2.5 is best since it tends to succeed during almost all market times, minus recessions which hammer any leveraged etf.

to the guy who took profits out of the security, dummy

please tell me that you are paying interest on a loan to have learned this at university lmao

After the manager discount, the total bill was $25 for the meal. The theft was $2. Each man paid $9 toward the total $27 (meal + theft).

I'm finishing a business degree without debt. But everything I just said and everything I know about investing has come from personal research. I've been studying markets, finance, and economics for personal enjoyment and gain since high school.