“Stress Test Your Portfolio” for Risk and Return Tradeoffs
We start by asking questions like:
- Are you Properly Diversified?
- Is Your Portfolio Ready for the Next Downturn?
- Do you understand your personal investment risk and return and how your investments might perform in the future?
Tobin Investment Planning LLC can run a series of stress tests on your portfolio for both good and bad events:
What happens if…
- Stock market collapses or rebounds
- Negative rates come to the US
- Fed interest rate move
- Oil Price move
- Inflation, etc.
Results will show the following:
- How a properly diversified portfolio can help mitigate risk
- The trade-off between risk and return under periods of market stress
- Determine if your personal risk tolerance is aligned with your portfolio risk
- Expose tail risk scenarios
“Risk comes from not knowing what you’re doing.” Warren Buffett