Negative-return

A 'negative return' signifies a loss or a decline in the value of an investment, asset, or project over a specific period. It indicates that the return generated is less than the initial investment. It's the opposite of a positive return, where gains are achieved. Various factors can cause negative returns, including market downturns, poor management, economic instability, or unforeseen events. It's a crucial metric for assessing investment performance and risk.

Negative-return meaning with examples

• The stock market experienced a significant downturn last quarter, leading to a **negative return** for many investors. Their portfolios, which held a range of stocks, decreased in value. Many were forced to cut back on expenses. The prolonged bear market caused overall losses. Investors became extremely cautious. The overall downturn impacted many portfolios.
• Investing in the real estate project yielded a **negative return** due to unexpected construction delays and rising material costs. The original budget was exceeded, and the project's value declined. Many investors lost money and were disappointed. The project's performance fell significantly short of projections. The delays resulted in additional financial burdens. The project was completed but at a huge loss.
• The company's poor financial performance resulted in a **negative return** for shareholders. They suffered from a drop in the stock price. Poor decisions by leadership contributed to the losses. The company had to announce significant layoffs. The stock went from one high to a low, and its value plummeted rapidly. Shareholders were very displeased.
• A bond investment's **negative return** resulted from a sudden increase in interest rates. The existing bonds, which paid a lower interest rate, became less attractive. The bond prices declined accordingly, leading to an overall loss. The value changed significantly, and the holder suffered a loss. This resulted in an overall downturn. The investor needed to get out fast.