It Takes a larger Percentage Increase To Match The Same Percetage Decrease

This is simple stuff.  But.  Many people don’t do that math on investments.  If you invest a $100 and the market goes down 50% you have $50.  Now.  If the market goes up 50% from here.  You now have $75.  After 50% down, 50% up isn’t the same.

If you have a $100 investment and it goes down 10% you have $90.  If it goes up 10% you have $99.  The smaller the loss, the closer the same percentage increase gets you whole.

Many people I know lost about 35% in the market decrease.  So if they had $100, they now have about $65.  If the market goes up 35% they have about $88.  They still need it to go up another 14% to be whole again.  But you can’t simpley add 14% plus 35% and say the market has to go up 49% to get you whole.  The market actually has to go up about 54% to get back to your $100 after a 35% decrease.

0 Responses to “It Takes a larger Percentage Increase To Match The Same Percetage Decrease”


  1. No Comments

Leave a Reply