“Cut your loses at a much more reasonable level like…”

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Hi Mr. Covel,

It seems all the managers you listed came out of those years 2000; 2001 and 2002 doing fine even with their tremendous drawdowns.

I really don’t understand that the trend could lead to having 25% and more drawdowns. If you use the 5 and 20 days drawdown like that wouldn’t happen.

When Mr. Dunn was being down how did he know when his investments were going up?

I question why take a 25% drawdown and not cut your loses at a much more reasonable level like 5% to 7%.

It seems he gave back a lot more money than most investors could tolerate.

Mike

DD comes from many small losses across many markets, not from one market alone.

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