Run a stress test based on higher interest rates
A risk question asks how much of a portfolio depends on one thing going right — a single position, a sector, a country. Concentration is read as a share of the total, which is what the figures below show.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
You asked for a stress test for higher interest rates. I ran a scenario on your portfolio using the following assumptions and show the hypothetical results below.
Assumptions:
- Interest-rate shock: rates rise by +200 basis points (+2,00%) applied today to market exposures.
- What is shocked: equities, ETFs and bonds priced by market (applied to their market values); crypto and cash unchanged; precious metals treated as mildly negative (-5,00%).
- Held fixed: no buys/sells or FX moves; dividends and fees ignored.
- For equities/ETFs: value change approximated by a -10% sensitivity per +1% rate for long-duration growth exposures and -3% per +1% for value/cyclical exposures; applied per holding where portfolio volatility/case suggests growth vs cyclical.
Hypothetical portfolio impact (scenario result)
| Item | Value (EUR) |
|---|---|
| Portfolio value before scenario | 90.983,96 € |
| Portfolio value in this scenario | 86.191,32 € |
| Change in value (EUR) | -4.792,64 € |
| Change (%) | -5,27% |
Assumptions detail inside scenario:
- Equities & ETFs: applied differentiated shocks (growth/tech holdings: -20,00% for +2,00% rates; more cyclical/industrial holdings: -6,00%); crypto unchanged; cash unchanged; gold -5,00%.
- Changes applied to today's holdings values (no trading, no FX moves).
What this shows
- In this hypothetical scenario your portfolio would fall from 90.983,96 € to 86.191,32 €, a change of -4.792,64 € (-5,27%) under the stated assumptions.
- The scenario treats growth-heavy, long-duration exposures (technology, mega-cap growth) as most sensitive to higher rates, while cash and crypto were held steady and gold took a small hit as assumed.
If you want a different shock size, or to treat crypto or gold differently, I can rerun with new assumptions.
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See this for your own portfolio
The assistant answers the same question about your own holdings, with your figures and today’s prices. Import from your broker, or open the demo portfolio and ask it there.