The fall is measured in weeks. The wait is measured in years.
Break-even is not symmetric. The deeper the fall, the more the climb back demands, and the longer you sit below your old high. Waits assume an 11 percent compounding rate on what you hold.
| The fall |
Climb back needed |
The wait |
| minus 10 pct | plus 11.1 pct | 12 months |
| minus 20 pct | plus 25.0 pct | 26 months |
| minus 30 pct | plus 42.9 pct | 41 months |
| minus 40 pct | plus 66.7 pct | 59 months |
| minus 50 pct | plus 100.0 pct | 80 months |
The minus 20 row is the one most equity investors will live through, several times. 26 months is two years of statements below the old high. Two years of a SIP that looks like it is doing nothing. The fall tests your stomach for a week. The wait tests your patience for years.