Home
Stage Seventeen
Portfolio-Level Risk
Stage 17 · Act 7

Portfolio-Level Risk

Stage 16 built the portfolio. Stage 17 stress-tests it. Drawdowns, concentration, the correlation trap, single-stock blowups, the bonds-vs-stocks story, and the meta-lesson that most headlines do not matter — all framed at the level of the whole portfolio, not the level of any one position.

9 lessons· 216 coins available· Earn the Risk Reader badge

  1. 01

    History of Drawdowns (1929 → 2020)

    A century of stock-market drawdowns, on one chart. Six bottoms, six recoveries, one shape.

  2. 02

    What a 50% Drawdown Feels Like

    A $100,000 portfolio sliding through the 2008 crash, position by position. The chart drops. So does each line.

  3. 03

    Position Concentration Risk

    One stock should never be allowed to decide your year. Here is the math behind why.

  4. 04

    Sector Concentration Risk

    Twelve different stocks, all in tech, is one bet wearing twelve costumes.

  5. 05

    The Correlation Trap

    Assets that look uncorrelated in calm markets often crash together when it actually matters.

  6. 06

    Single-Stock Tail Risk (Enron, Wirecard, Lehman)

    Even great-looking companies sometimes go to zero. The fix is structural, not analytical.

  7. 07

    When Bonds Hedge Stocks — and the 2022 Exception

    The bond sleeve is the textbook crash cushion. In 2022 it stopped working — for one specific reason.

  8. 08

    Asset Mix as the Primary Hedge

    Across decades of research, the asset-mix decision explains more about portfolio behaviour than any individual stock pick.

  9. 09

    Meta-Lesson: Most Headlines Don't Matter

    Decades of investing happen against a daily firehose of news. The discipline is knowing which fraction is signal.

    Capstone
Start Lesson 1 →

Key terms

Plain-English definitions for every concept in this stage.