The climb back is farther than the plunge

by Bill Catlin, Minnesota Public Radio

The climb back requires a gain that's way bigger than the fall.

St. Paul, Minn. — The Dow Jones Industrial Average fell 40 percent from its peak of 14,165 in October of last year to the low (so far) of 8,451 last Friday.

So, the Dow just has to regain 40 percent to get back where it was, right?

Wrong.

A gain of 40 percent would only get the Dow to 11,832.

To recoup the entire loss, the Dow has to gain 68 percent.

Bummer.

Here's the math:

14,165 x .40 = 5,713

8,451 x .40 = 3,380

8,451 x .676 = 5,713

So, after Monday's 11 percent gain, there's only 57 percent left to go.