Portfolio Stress Test
Test how your investment portfolio would perform during various market crises. This tool helps you analyze the impact of historical scenarios like the 2008 financial crisis or create custom stress scenarios to evaluate your portfolio's resilience.
Portfolio Allocation
Asset Class
Allocation (%)
Value ($)
US Large Cap Stocks
$200,000
US Small Cap Stocks
$50,000
International Stocks
$75,000
US Government Bonds
$75,000
US Corporate Bonds
$50,000
Cash & Equivalents
$50,000
Total
100%
$500,000
Stress Test Scenario
2008 Financial Crisis
The global financial crisis of 2008-2009
Dot-com Bubble Burst
The technology crash of 2000-2002
COVID-19 Crash
The pandemic-induced market crash of early 2020
Inflation Shock
A scenario with high inflation and rising interest rates
Custom Scenario
Your own defined market scenario
Stress Test Results
Portfolio Impact
0.00%
Overall portfolio change
Dollar Impact
$NaN
Change in portfolio value
Worst Performer
0.00%
Most negatively impacted asset
Best Performer
0.00%
Most resilient asset
Asset Class Impact Analysis
Asset Class
Allocation
Impact
Value Change
Portfolio Value After Stress
Before
$500,000
After
$NaN
Estimated Recovery Time:
No recovery needed (positive impact)
Understanding Stress Tests
Portfolio stress testing helps you understand how your investments might perform during adverse market conditions. This tool applies historical or custom scenarios to your current asset allocation to estimate potential losses.
Key insights:
- Diversification benefit: A well-diversified portfolio typically experiences less severe drawdowns than individual asset classes during market stress.
- Defensive assets: Assets like government bonds and cash often provide protection during equity market downturns, though this relationship can vary depending on the nature of the crisis.
- Recovery planning: Understanding potential drawdowns helps you prepare emotionally and financially for market turbulence, reducing the likelihood of panic selling at market bottoms.
Remember that past scenarios don't predict future market behavior exactly. Each market crisis has unique characteristics, and correlations between asset classes can change during periods of extreme stress.