The 50% Myth: Why a 50% Loss Requires a 100% Gain (And How to Avoid the Math Problem Entirely)

Frank L Day

Published on: 05/02/2026

t's cold, hard math. And it's the kind of math that Wall Street would rather you not think about too deeply, because once you understand it, the whole "stay invested, ride it out, it always comes back" narrative starts to look a lot less appealing. Especially when you're 62 and the market just took a nosedive. Let's break down why a 50% loss isn't just "temporary volatility": it's a mathematical prison that can trap your retirement for years.