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![rebound_capital Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1932002407178981376.png) Rebound Capital [@rebound_capital](/creator/twitter/rebound_capital) on x XXX followers
Created: 2025-07-21 16:21:30 UTC

Morgan Stanley analyzed more than XXXXX companies, and the results are fascinating:

The probability of recovery of  stock is inversely proportional to the magnitude of drawdown. Meaning, the more a stock drops, the lower the chance it will bounce back.

For example, of the 1842 stocks that dropped more than 95%, only X in X made it back. However, of the XXX stocks that dropped between 50-55%, X in X made it back to their previous high!

Moreover, the stocks that went down the most offered the most return when they bounced back:

At Rebound Capital, I analyze world-class stocks in a drawdown. I research a wide variety of stocks to separate wheat from the chaff.

Follow along if you haven’t already!

![](https://pbs.twimg.com/media/GwZNejjaEAACbMq.jpg)

XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1947331106350756237/c:line.svg)

**Related Topics**
[stocks](/topic/stocks)
[drops](/topic/drops)
[morgan stanley](/topic/morgan-stanley)
[stocks financial services](/topic/stocks-financial-services)

[Post Link](https://x.com/rebound_capital/status/1947331106350756237)