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The Intimidating Mathematical Hurdle A Beaten-down Stock Market Always Clears
Benzinga·2025-10-21 03:29

A TKer subscriber recently pointed out that if your investment is down 20%, then you'd need a 25% gain from the current level to return to the initial level.For example, if your investment of 100falls20100 falls 20% (or 20), then you will have an asset worth 80.Toreturntobreakeven,thevalueofyour80. To return to breakeven, the value of your 80 asset would need to increase by 25% (or $20).This is a helpful way of thinking about investing as you look at the red and green arrows in your portfolio. It keeps your math sharp while reminding you that earnin ...