How It Works

Here at Klaraos, we utilize “Hidden Levers”, an up and coming simulation software, to stress test our financial portfolios. Hidden Levers is a Fintech solution that takes various examples of scenarios that could potentially occur within the financial markets. The software is designed to stress test your portfolio over various scenarios that have happened in our past, as well as predict what could happen to your exact portfolio going forward. We can run analysis that covers the specific "keep you up at night" situation such as oil crashes, terrorist attacks, market crashes, negative interest rates and many more. Hidden Levers runs each individual scenario over 1000 times to give you the most accurate prediction on your personalized portfolio.When I was young getting your price updates, came through checking for quotes in the paper. So in today’s world you are barraged by information.

That information often times makes staying the course more difficult. Having an understanding of how your portfolio might react to the broader environment is important. Examples would be the 2008-2009 Great Recession, Trade Wars, Reversion of S&P to historical company valuations, and so on. These models are applied to your current holdings and then illustrate expected investment returns given those scenarios. It is important to remember that these are only models, and are simply a guide, or a window into possible outcomes based on historical data and results. We utilize this review on all of our model portfolios as well as clients existing portfolios which often vary slightly. We believe that the stress test should include not only your stock and bond holdings, but also those that are real estate owned. So, try it out, and get a second opinion on your portfolio and asset holdings now by doing the following: