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.
- 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.