Portfolio Simulator

Model your multi-asset portfolio using historical return and volatility data. Adjust allocations to see projected outcomes and risk metrics.

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Asset Allocation
TOTAL: 100%0% REMAINING
US Equities
Global Equities (ex-US)
High Yield Bonds
Investment Grade Bonds
Real Estate (REITs)
Commodities
Cash & Equivalents
Rebalancing Alerts
Drift Threshold5%

Alert when any asset class drifts more than 5% from target

Parameters
Time Horizon10 Years
Initial Investment$100,000
PROJECTED IRR
5.8%
EST. VOLATILITY
9.4%
FINAL VALUE (10Y)
$175,237
Wealth Projection
Y0Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10$0k$150k$300k$450k$600k
Allocation
  • US Equities
  • Global Equities (ex-US)
  • High Yield Bonds
  • Investment Grade Bonds
  • Real Estate (REITs)
  • Commodities
  • Cash & Equivalents
Stress Test

Portfolio Simulation Report

Generated on February 9, 2026

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Executive Summary

PROJECTED IRR
5.8%
EST. VOLATILITY
9.4%
FINAL VALUE (10 YRS)
$175,237

Strategic Implications

  • Balanced Risk: The portfolio strikes a middle ground between growth and stability, suitable for moderate time horizons.

Allocation Breakdown

US Equities: 15%
Global Equities (ex-US): 15%
High Yield Bonds: 14%
Investment Grade Bonds: 14%
Real Estate (REITs): 14%
Commodities: 14%
Cash & Equivalents: 14%

Weightings

Asset ClassWeight
US Equities15%
Global Equities (ex-US)15%
High Yield Bonds14%
Investment Grade Bonds14%
Real Estate (REITs)14%
Commodities14%
Cash & Equivalents14%
Allocation Institute © 2026
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Stress Test Analysis

Historical Crisis Simulation

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The following analysis simulates how your current portfolio allocation would have performed during major historical market dislocations. Understanding these "tail risks" is crucial for assessing the resilience of your capital preservation strategy.

-22.6%
Impact

COVID-19 Crash

2020

A global stock market crash that began in February 2020 and ended in April 2020. It was the fastest fall in global stock markets in financial history, and the most devastating crash since the Wall Street Crash of 1929.

-35.9%
Impact

Global Financial Crisis

2008

The systemic banking crisis and housing market collapse that led to the Great Recession.

-14.8%
Impact

Dot-com Bubble Burst

2000-2002

The collapse of the technology stock bubble and subsequent recession.

-11.1%
Impact

European Debt Crisis

2011

Sovereign debt crisis in the Eurozone causing global market volatility.

-13.9%
Impact

Oil Price Crash

2015-2016

Plummeting oil prices causing turmoil in energy sectors and emerging markets.

Allocation Institute © 2026
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Appendix

Definitions & Methodology

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Glossary of Terms

Expected Return

The weighted average of the historical returns of the assets in the portfolio. It represents the long-term average growth rate, though actual returns in any given year will vary.

Volatility (Standard Deviation)

A statistical measure of the dispersion of returns for a given portfolio. Higher volatility means the portfolio's value can change dramatically over a short time period in either direction.

Sharpe Ratio

A measure of risk-adjusted return. It is calculated by subtracting the risk-free rate from the return of the portfolio and dividing the result by the portfolio's standard deviation.

Correlation

A statistic that measures the degree to which two securities move in relation to each other. A correlation of 1.0 means they move perfectly in sync, while -1.0 means they move in opposite directions.

Max Drawdown

The maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. It is an indicator of downside risk over a specified time period.

Methodology Note

This simulation uses historical return and volatility data for major asset classes. The projections are based on a Monte Carlo simulation assumption using a normal distribution of returns defined by the expected return and standard deviation (volatility) of the constructed portfolio.

Disclaimer: Past performance is not indicative of future results. This report is for educational and illustrative purposes only and does not constitute financial advice. The crisis scenarios are simplified models of historical events and may not capture all the complexities of actual market behavior.

Allocation Institute © 2026
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