Stress test your portfolio in seconds – 2019 Update

14 min Read Published: 29 Aug 2019

UPDATE AUGUST 2019: I have now updated the stress test tool to take into account three new scenarios, as described in full at the foot of this article. These new scenarios look at the possible impact of a hard/no-deal Brexit, an escalation in the US-China trade war as well as the US Federal Reserve beginning to tighten monetary policy once again.

Investors, be they professional or DIY investors, don't give enough consideration to the downside potential of their portfolios. When engineers build a new skyscraper they don't just focus on reaching for the stars. In fact, they pay more attention to the structure's ability to remain upright. How will the structure cope in high winds or an earthquake? How much weight can it hold per square inch? This stress testing of materials and construction ultimately lays the foundation for the success of the project.

Building an investment portfolio shouldn't be any different.

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