Statement Shock refers to a shock that occurs when the value of an investor's portfolio drops. The term indicates that the investor is shocked after opening his/her investment statement and seeing that the market prices have dramatically decreased.
Additional meaning of Statement Shock:
The average investor does not follow the daily fluctuation of the market, so they may only realize the changes to their portfolio when he/she receives the statement in the mail on a monthly, quarterly or annual basis. Statement shock is usually due to an unexpected drop in value, but it can also be caused by lower-than-expected returns.