is there a j curve effect in investing 
in investing the j curve is cited as the usual trajectory of a private equity investment these deep pocketed investors are willing to put up with initial losses while spending substantial amounts of money to return an ailing company to profitability the j curve if successful is expected to emerge in five to eight years from the purchase of the company 2the bottom linethe j curve effect is most often used in economics to describe the effects of a currency devaluation and in private equity to describe the trajectory of a long term investment it could be relevant in many other instances when used to illustrate an outcome that starts with a negative impact but is quickly followed by a sharply positive impact 