1/If the non levered investment Max drawdown is noted MD then cumulative return of levered investment is
2*R if MD>-50% else 0.
But what’s more interesting is how wrong the statement is. Indeed for the 2 levered investment to generate 2*R is has to be levered potentially more.
Mar 7, 2020 • 27 tweets • 4 min read
Some extracts from the Lancet article on #COVID19:
1/Governments will not be able to minimise both deaths from coronavirus disease 2019 (COVID-19) and the economic impact of viral spread. Keeping mortality as low as possible will be the highest priority for individuals;
2/hence governments must put in place measures to ameliorate the inevitable economic downturn. In our view, COVID-19 has developed into a pandemic, with small chains of transmission in many countries and large chains resulting in extensive spread
