Can stocks recover from a long-term slump?
Whether the stock can recover its original value after a long-term stock market crash depends on the situation. It will be more difficult for investors to return to their original value if they don't add positions after the plunge. If you don't want to return to your capital after the stock market crash, it mainly depends on the company's operation, performance and financial situation. If all the data are good, you may return to the original, but there is also a great chance of losing money. If the company's operating conditions, performance and financial conditions are poor, it is recommended to stop the loss in time, otherwise it may lose more and more in the later period.
Stock investment is different from fund investment. If the fund investment is held for a long time, the probability of returning to the capital will be higher. After all, the fund is basically positive for a year, and there are few negative returns. But stocks are different. Stock investment is risky. When the market situation is very bad, investors may even lose all their money. Buying point of stock investment is very important, and selling point is more important. Stop loss in time when necessary can reduce a lot of losses. The stock fell by 20%. How long does it take to recover?
A stock falls by 20%, and normally it rises by 25% to recover its capital. But after a stock falls, investors will make up or reduce their positions. In this case, the rate of return after the stock falls by 20% needs to be recalculated. After the stock falls to 20%, investors will reduce the loss rate and share the investment cost after adding positions, so they can return to their capital without rising to 20%.