How Is the Down Market Stress Test Modeled in Income InSight?

Stress Test–Down Market

The down market stress test is modeled on the assumptions made within the "Asset Classes" tab, under the "Portfolio Assumptions" section, on the Income InSight homepage. 

Asset Classes: 

  • US Stock                    SPDR S&P 500 ETF
  • Bonds                         Vanguard Total Bond Market Index Fund
  • Real Estate                Vanguard Real Estate Index Fund ETF
  • Metals                        SPDR Gold Shares
  • Foreign Stock           iShares MSCI EAFE ETF

In the highlighted instance below, assets mapped to US Stock in the stress test would be based on the down market performance as outlined.  

The down market will be based on "heavy tailed" methodology used in SmartRisk and analysis of the actual portfolios entered for the client. Ultimately, the value added by adding client specific investment and portfolio data is worth the effort to obtain it. You can also import data from RedTail or TD Ameritrade VEO as shown below.