• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer
Bautis Financial

Bautis Financial

Secure your Castle, Achieve your Dreams.

  • Podcasts
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • Discover How
    • Risk Score
    • Workshops
    • Learning Center
  • Client Access
    • Wealth Center
    • Orion
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube
  • Schedule a Call

Bank and Portfolio Stress Tests

Every year the Federal Reserve puts banks through a series of annual “stress tests” which gauge whether banks are healthy enough to keep lending through an economic meltdown and whether they can continue with their dividend payouts and share buyback plans. This is the eight consecutive year the Fed has executed the stress tests and is intended to give the public confidence that banks are better prepared for the next crisis. In the early years many banks flunked these tests, but they have fared better in recent years after raising hundreds of billions of dollars in capital and taking an ax to riskier businesses.

This years test was the toughest to date, laying out a doomsday scenario of double-digit unemployment, cratering home and stock prices, and soaring losses on credit cards and car loans. Of the 35 banks that went through the test only Deutsche Bank failed.

Stress testing is a similar exercise that I perform on the portfolios that I manage. I want to see how portfolios and investments would react if there is an interest rate rise, or if we see a similar bear market to what we saw in 2008 and 2009. On the positive side I also want to know what to expect if there is a bull market like we saw in 2013.

Here is a page from my website where you can read more about how I manage risk and stress test the portfolios I work with. https://bautisfinancial.com/fearless-investing

Primary Sidebar

Featured Articles

Risk Score
21 Key Stats

Recent Posts

The Markets: A Year in Review and a Look Ahead

January 15, 2021 By Marc

Your Second Stimulus Check is in the Mail

Your Second Stimulus Check is in the Mail

January 13, 2021 By Marc

Emergency Fund

January 12, 2021 By Marc

What to Do if You Get a Tax Notice From the IRS With Allan Rolnick – Daily Flash Briefing

What to Do if You Get a Tax Notice From the IRS With Allan Rolnick – Daily Flash Briefing

January 8, 2021 By Marc

Episode 61 – What to Do if You Get a Tax Notice From the IRS With Allan Rolnick

Episode 61 – What to Do if You Get a Tax Notice From the IRS With Allan Rolnick

January 7, 2021 By Marc

Blog Categories

  • Cash Flow (21)
  • Daily Videos (9)
  • Education (12)
  • Estate Planning (4)
  • Financial Wellness (12)
  • Flash Briefing (1)
  • Flash Briefing Old (187)
  • General (48)
  • Insurance (9)
  • Investing (38)
  • Learning Center (1)
  • Medicare (6)
  • News (13)
  • Newsletter (6)
  • Personal Finance (26)
  • Podcasts (61)
  • Political (6)
  • Real Estate (1)
  • Retirement (44)
  • Saving for Retirement (15)
  • Social Security and Medicare (12)
  • Taxes (14)
  • Uncategorized (186)
  • Video (3)
  • Wealth Management (18)
  • Workshops (5)
Bautis Financial Insights

Subscribe to Our Insights

Sign up to receive valuable financial insight and updates straight to your inbox each month.

Footer

Social

Stay in Touch
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Contact

Bautis Financial
7 North Mountain Ave
Montclair, NJ 07042
Get directions
862-205-5800
Contact

Copyright © 2021 · Business Pro Theme on Genesis Framework · WordPress · Log in