← Practice
Portfolio: Your client panics during a crash
The market drops 20%. Your client wants to sell everything. Guide them with numbers — not emotions.
Stock AnalysisBeginnerCalculation
March 2026. Markets drop 20% in 3 weeks due to a banking crisis.
Your client (invested for 2 years) calls in panic:
"I'm losing money! We need to sell everything before it drops more!"
Their portfolio:
- Initial investment: €200,000 (March 2024)
- Value before crash: €240,000 (+20% in 2 years)
- Current value (post-crash): €192,000
- Allocation: 70% equities, 30% bonds
- Planned investment horizon: 10 years (8 remaining)
You need to convince them with numbers, not platitudes.
Given
| Initial investment | 200,000 € |
| Pre-crash value | 240,000 € |
| Current value | 192,000 € |
| Historical equity return (long term) | 8 %/an |
| Remaining horizon | 8 ans |
Question 1/4
First, frame the loss. The client says "I'm losing money". Relative to their €200K initial investment, have they actually lost?
Your answerEnter a number in %
%
0/4