Bounce back from stock price declines

The more a stock falls, the less time it will take to recover from its losses.

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From the magazine.

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CHART 1

Years to Break Even After Stock Price Declines

Yield

Yield

Yield

Yield

Yield

Yield

Yield

Yield

Yield

Yield

Price Drop

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

10%

95.8

48.4

32.6

24.7

20

16.8

14.5

12.9

11.5

10.5

20%

90.3

45.6

30.8

23.3

18.9

15.9

13.8

12.2

10.9

9.9

30%

84.2

42.6

28.8

21.8

17.7

14.9

12.9

11.4

10.3

9.3

40%

77.6

39.3

26.6

20.2

16.3

13.8

12

10.6

9.5

8.7

50%

70.4

35.7

24.1

18.4

14.9

12.6

10.9

9.7

8.7

8

60%

62.2

31.6

21.4

16.3

13.3

11.2

9.8

8.7

7.8

7.2

70%

52.7

26.9

18.3

14

11.4

9.7

8.5

7.6

6.8

6.3

80%

41.4

21.3

14.6

11.2

9.2

7.9

6.9

6.2

5.6

5.2

Adapted from The Future For Investors (p. 150) Table 10.2 by Jeremy Siegel, 2005. New York: Random House. Copyright 2005 by Jeremy Siegel. Adapted with permission.

 CHART 2

Years to Break Even with Dividends Reinvested

Chart2

 

 

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