See if your portfolio can withstand the next market crash?
The stress test tool is just one of the tools created for 80-20 Investor members which we are giving away free for a limited time only. 80-20 Investor is a DIY investment service that empowers anyone to run their own fund portfolio of unit trusts, ,ETFs and investment trusts for the price of a cup of coffee a week.
How the stress test tool works
The stress test tool will instantly analyse your funds using the key statistical measures listed below to calculate how your portfolio might perform under periods of market stress.
- Sortino ratio
- Sharpe Ratio
- Frequency of negative returns
The tool also predicts how your portfolio might perform in each of the following scenarios which would all cause the stock market to fall by more than 10%:
- Scenario 1 – if central banks suddenly withdraw their support from the market
- Scenario 2 – if concerns over Chinese or global economic growth panics the market again
- Scenario 3 – if a new banking crisis emerges
Each fund (as well as your portfolio) receives an overall score which highlights the potential resilience to a new market sell-off.
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Why stress test your portfolio?
When equity markets are at or near all time highs the potential for a market fall is increasingly likely. The largest investment banks and financial institutions routinely perform stress test scenarios to see how assets or markets will hold up.
Yet it has been impossible for DIY investors to stress test their portfolios in the same way. How can they test to see how their portfolio might react if global growth concerns rears its head, or if China’s economy implodes? How can they gauge how their portfolio will fare in an unknown Black Swan event?
That is why 80-20 Investor has built a tool that can stress test any portfolio (and over 1,100 funds) instantly. A tool which you can download and keep for future use. The stress test tool is just one of the tools that we have created for 80-20 Investor members and are giving away free for a limited time only.
Damien helps to put you in control
- Damien Fahy, Founder
Access the stress test tool
Fill in your email address to be sent the stress test tool