Stress tested my portfolio against the dot-com crash, wasn’t ready for what I saw
So I ran my portfolio through a dot-com bust simulator just to see what would happen.
Holy shit. Down 54.7% and would've taken 15 years to recover. My tech positions got absolutely destroyed, semiconductors down 70-85%. I knew I was tech heavy but didn't realize how brutal it would actually be in a real crash scenario.
I always tell myself I have "aggressive risk tolerance" but seeing half my portfolio gone in actual dollars hit different. It's one thing to say you can handle volatility, it's another to watch your account drop that hard and know it could take over a decade to get back to even.
With everyone talking about the AI bubble potentially popping I figured I should actually run the numbers instead of just assuming I'd be fine. Built a stress testing tool for this, link's in my bio if you want to run your own portfolio through different scenarios.
Anyone else doing this right now? Curious what you're finding.
For context my portfolio is like 32% crypto (IBIT), heavy on semiconductors and networking stuff, some index funds and cash.