The 2008 Crisis
The 'Great Recession': A study in extreme correlation and systemic risk.
The -55.8% Drawdown
From October 2007 to March 2009, the S&P 500 lost more than half its value. For many investors, this was a "once-in-a-generation" event that exposed the danger of being 100% in stocks during a credit crunch.
What Happened?
Triggered by the subprime mortgage collapse and the failure of Lehman Brothers, the crisis caused a global liquidity freeze. Assets that normally moved in opposite directions suddenly crashed together as investors scrambled for cash.
Systemic Risk
The Entire banking system was "too big to fail." This is why stress testing for banking exposure is critical in your portfolio.
Recovery Timeline
It took 4 years for the market to return to its pre-crisis peak. Do you have the cash reserves to wait that long?
Survival Analysis
While stocks fell 55%, a classic 60/40 portfolio fell roughly 30%. Government bonds were the only "safe haven" during this period. StressTest.pro allows you to replay this exact window (Oct 2007 - Mar 2009) against your current portfolio to see if you would have survived.
Replay 2008 Stress Test
Historical Simulator
Don't guess how you'll feel in a crash. See the actual numbers. Run your current tickers through the 2008 Financial Crisis instantly.
Run 2008 Simulation