I Modelled a 40% Stock Market Crash. Here’s What Happens.

What would happen to my portfolio if the stock market crashed 40%? In this video, I stress test my £900,000 investment portfolio against two very different scenarios: a 40% stock market crash and a 25% stock market rally. I break down the assumptions behind each asset class, including cash, inflation-linked bonds, defensive funds and gold, to see how a more defensive portfolio might perform in both a bear market and a bull market. This is not a prediction of what markets will do next. It is a way of thinking about portfolio construction, asset allocation, risk management and expected returns when stock market valuations appear elevated. 00:00 Intro 00:45 Results 02:09 My current asset allocation 02:33 Why valuations matter 03:35 Bear market scenario: stocks fall 40% 07:04 Bear market results 07:50 Bull market scenario: stocks rise 25% 09:24 Bull market results 10:05 Risk versus reward If you enjoy videos on investing, value investing, portfolio management, asset allocation, market valuations and long-term wealth building, consider subscribing. I am not a financial advisor. The content in this video is for educational and informational purposes only. Investing involves risk, and past performance is no guarantee of future results. Always do your own research or consult with a certified professional before making financial decisions. #Investing #StockMarket #Portfolio #ValueInvesting #AssetAllocation #BearMarket #MarketCrash #PersonalFinance