| To break even in one period |
Periods necessary to break even given a percentage return of |
|||
|---|---|---|---|---|
| If you lose | You need | 1% | 5% | 10% |
| 10% | 11% | 10.6 | 2.2 | 1.1 |
| 25% | 33% | 28.9 | 5.9 | 3.0 |
| 50% | 100% | 69.7 | 14.2 | 7.3 |
| 60% | 150% | 92.1 | 18.8 | 9.6 |
| 80% | 400% | 161.7 | 33.0 | 16.9 |
Scatter chart showing if you lose 80%, you need 400% in return to break even; if you lose 60%, you need 150%; if you lose 50%, you need 100%; if you lose 25%, you need 33.3%; if you lose 10%, you need 11.1%.
Source: Wells Fargo Investment Institute, as of December 31, 2023. There is no guarantee it will be possible to break even. All investing involves risk including the possible loss of principal. Past performance is no guarantee of future results.
Key Takeaways
- It is important to recognize that the more a portfolio loses in a downturn, the longer it typically takes to recoup those losses.