Chart of the Day

Chart of the Day: Investing vs. Gambling

Today’s Chart of the Day from Treyton Devore shows the odds of losing vs. making money. Over one month, the probability of loss is 38%, over five years it goes to 11%, and over 15 years it goes to only 0.2%. People often cringe at the term “losing,” as you only “lose” if you are at the end, must sell, and therefore have no possibility of recovery. If you don’t sell and have a long enough timeline with your “end” in the distant future, according to history, the odds are in your favor.