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How much profit is needed to compensate for the losses in stocks?

  • November 20, 2022
  • 15 views

This graph shows how much profit is needed to compensate for the losses. The horizontal line shows a loss of -10% to -90%, the vertical line shows a profit of 11% to 900%.

Everyone probably knows that if the portfolio sagged by 50%, it needs to grow by 100% in order to recover, so this graph just clearly shows this dependence.

For example, if you bought TAL at $55, you now need 900% growth just to break even.

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