Mad Money Machine

by Paul Douglas Boyer

Getting Back to Even

 Here’s a handy table (for your printing pleasure) that shows what percentage gain you need to get on your investments to get back to where you were before a certain percentage loss. So for example, the S&P 500 index is down about 40% year to date. Looking down the table, you’ll see that we’d need a gain of 66.7% to get back to where it was at the start of the year.

Table of What It Takes  

to Get Back to Even

If your loss was:
You will need a gain of:
5.0%   5.3%
10.0%   11.1%
15.0%   17.6%
20.0%   25.0%
25.0%   33.3%
30.0%   42.9%
35.0%   53.8%
40.0%   66.7%
45.0%   81.8%
50.0%   100.0%
55.0%   122.2%
60.0%   150.0%
65.0%   185.7%
66.6% 200.0%
70.0%   233.3%
75.0%   300.0%
80.0%   400.0%
85.0%   566.7%
90.0%   900.0%
95.0%   1900.0%
97.0%   3233.3%
98.0%   4900.0%
99.0%   9900.0%
100.0%  
OOPS!

For Fannie Mae (FNM) you’d need a gain of 7839%. It closed at 39.98 on 31 Dec and now trades at about 0.51.

Tue, November 18 2008 » Analysis, Blog