Returns Needed to Recover a Stock Market Loss

Returns Needed to Recover a Stock Market Loss

Most of us lost money when the stock market plunged early this year. 

This is a picture of the Dow 30 which went from $29,568 to $19,173 as of 03/20/20 which is more than 35% 

Capital losses
In its simplest and perhaps most painful form, you buy a stock then watch the price go down and stay down. This loss is not realized until the asset is sold for a price that is lower than the original purchase price.

Now that I am down, How much return back do I need to break-even based on percentage loss?

Table 1. Percentage of Gain or Loss
$1,000 Initial Investment
If the value changes by Getting back to the
initial value requires a
Percent Gain or Loss New Value Change of Gain or Loss
-100% Loss $ 0.00
-90% Loss $100.00 900% Gain
-80% Loss $200.00 400% Gain
-70% Loss $300.00 233% Gain
-60% Loss $400.00 150% Gain
-50% Loss $500.00 100% Gain
-40% Loss $600.00 67% Gain
-30% Loss $700.00 43% Gain
-20% Loss $800.00 25% Gain
-10% Loss $900.00 11% Gain
0% No change $1,000.00 0% No change

of course, let’s say is Monday you loss 10% which brings you back to $900 and Tuesday you gain 10% that’s only $990 you would still be down. 

 

About the author

Angel

I am Angel a licensed optician who likes to trade, save money and bring value.

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