Have you put your portfolio through a stress test? We can use this tool to help you analyze it in regards to different scenarios that may be worrying you. Watch this week's Arista Advice to find out more!
Find out more:
Hello, welcome to Arista Advice! Question of the week is: "Paul, what does all of this Fed increasing the interest rates do to my portfolio?" We have a really neat tool that we use here at Arista Wealth to stress test our client's portfolios and their friend's and their neighbor's and co-worker's portfolios. We take the values of their assets and different portfolios. We look at the holdings, and we put it into a stress test.
As you'll see right here, we can then stress test the portfolio in regards to inflation, energy, housing whiplash, the China reckoning, cryptomania, the debt cliff, the Fed stress test, the end of retail. There's a lot of fears that the media puts up in front of long-term investors to get you distracted and confused and nervous. The media loves to play with your emotions. Well, we have the tools to put the media in their place, and it's called the stress test. And all of these topics that I just discussed with you are ways to find out how your portfolio will behave, using history as a guide.
The output are some of these graphs that I'm sharing with you right now. It will explain to you the potential downside and the potential expected return on the upside. It also goes through and talks about the volatility and also the correlation index. It will also pull through for you, show you, if you're really diversified or over-diversified or under-diversified both in the US and also globally. If you're concerned about Russia or Ukraine or other parts of the world, we can help provide a little magnifying glass to see what assets and equities you own in certain parts of the world.
The key takeaway is there's tools. Don't feel isolated. Don't feel panicked. Don't feel worried. Give us a call. Let's discuss scheduling a stress test for you to know if you should really be concerned, or if you're over concerned about something that you really shouldn't be concerned about. Remember to go to AristaWealth.com to get other tools, tips, videos, and resources to help you live a life of significance.