AI Prompts for Investment Strategies

**Role:** You are a portfolio analyst specializing in diversification and risk management.

**My Portfolio:**
[List your holdings with approximate allocation percentages]

**Analysis Required:**
1. **Concentration Risk:** Identify any single position >15% or sector >30% of total portfolio
2. **Correlation Analysis:** Flag holdings likely to move together during market stress (e.g., multiple tech growth stocks, overlapping ETF holdings)
3. **Missing Exposures:** Identify asset classes, geographies, or sectors with zero allocation that could reduce overall volatility
4. **Rebalancing Plan:** Suggest specific trades to improve diversification while minimizing tax impact — prioritize selling in tax-advantaged accounts first
5. **Stress Scenario:** Model how this portfolio would perform in a 2022-style rate hike cycle vs. a 2020-style sudden crash

Provide a diversification score (1-10) with specific reasoning.

**Role:** You are a certified financial planner building a strategic asset allocation.

**My Situation:**
- Age: [age]
- Annual income: [amount] — Industry: [industry]
- Current savings/investments: [total amount]
- Retirement target age: [age]
- Risk tolerance: [conservative / moderate / aggressive]
- Existing assets: [home equity, pension, business ownership, etc.]
- Major upcoming expenses: [kids' college, home purchase, etc. with timeline]

**Build My Allocation:**
1. **Strategic Allocation:** Target percentages across: US stocks, international stocks, emerging markets, bonds, real estate, alternatives, cash
2. **Reasoning:** Explain WHY each allocation percentage fits my specific situation — not generic age-based rules
3. **Income Correlation Adjustment:** If my job/industry is tied to market performance (e.g., tech worker with stock comp), adjust equity allocation down accordingly
4. **Implementation:** Suggest specific low-cost index funds or ETFs for each bucket with expense ratios
5. **Glide Path:** How should this allocation shift over the next 5, 10, and 20 years?
6. **Rebalancing Triggers:** Define specific thresholds (e.g., ±5% drift) that should trigger rebalancing

**Role:** You are an equity research analyst building a comprehensive investment thesis.

**Company/Asset:** [name and ticker]
**My Initial View:** [bullish/bearish and why in 1-2 sentences]

**Build the Full Thesis:**

1. **Bull Case (3-5 points):** What has to go RIGHT for this to be a great investment? Include specific catalysts with estimated timelines.
2. **Bear Case (3-5 points):** What could go WRONG? Include risks most investors overlook (not just 'competition' and 'regulation').
3. **Valuation Check:** Based on current price of [price], what growth rate is the market pricing in? Is that realistic?
4. **Competitive Moat Assessment:** Rate the moat (none / narrow / wide) with specific evidence — switching costs, network effects, cost advantages, intangible assets.
5. **Management Quality:** Key decisions in the last 3 years that signal competence or concern.
6. **Kill Criteria:** Define 3 specific, measurable conditions that would invalidate this thesis and trigger a sell (e.g., 'revenue growth drops below 10% for 2 consecutive quarters').
7. **Position Sizing:** Given the thesis strength and risk level, suggest an appropriate portfolio allocation (%).

**Role:** You are a risk management specialist analyzing portfolio vulnerability.

**My Portfolio:**
[List holdings with allocations and current values]

**Total Portfolio Value:** [amount]
**Monthly Income Needed From Portfolio:** [amount, or 'none — still accumulating']

**Run These Stress Tests:**
1. **2008 Scenario (Financial Crisis):** Apply historical asset class drawdowns from Oct 2007 - Mar 2009. What's my portfolio worth at the bottom?
2. **2022 Scenario (Rate Shock):** Apply drawdowns from Jan-Oct 2022. How do my bonds and growth stocks fare simultaneously?
3. **Stagflation Scenario:** Model 8%+ inflation with stagnant growth for 18 months
4. **Black Swan:** My single largest holding drops 60% in 30 days

**For Each Scenario:**
- Dollar loss at maximum drawdown
- Time to recovery (historical precedent)
- Whether I'd need to sell at a loss to cover expenses
- Specific actions I should take DURING the crisis (not after)

**Risk Score:** Rate my portfolio risk 1-10 with specific vulnerabilities identified.

**Role:** You are a dividend investing specialist focused on sustainable income generation.

**My Goal:**
- Target monthly income: $[amount]
- Investment timeline: [years until I need the income]
- Current dividend portfolio: [list holdings or 'starting fresh']
- Tax situation: [taxable account / IRA / Roth / mix]

**Build My Dividend Strategy:**
1. **Income Math:** How much capital do I need at a sustainable [3-4%] yield to generate my target income? Show the gap between current and target.
2. **Portfolio Construction:** Suggest a mix of dividend aristocrats, dividend growth stocks, and REITs with target allocations — explain why each earns a spot.
3. **Yield Trap Detection:** For any holding yielding >5%, explain why it's sustainable OR flag the risk.
4. **Tax Optimization:** Map which holdings belong in taxable vs. tax-advantaged accounts (REITs in IRA, qualified dividends in taxable, etc.)
5. **Growth Path:** Model how reinvesting all dividends for [X years] compounds to reach my income target — show year-by-year projection.
6. **Dividend Safety Checklist:** For each suggested holding, assess payout ratio, free cash flow coverage, and consecutive years of dividend growth.

**Role:** You are a performance analyst comparing investment results against appropriate benchmarks.

**My Portfolio Performance:**
- Holdings: [list with purchase dates and current values]
- Total invested: [amount]
- Current value: [amount]
- Time period: [start date to now]
- Dividends received: [total, if tracked]
- Fees paid: [management fees, trading costs, fund expense ratios]

**Benchmark Against:**
1. **S&P 500 (SPY):** Same dollars, same dates, into SPY
2. **Total World (VT):** Same dollars, same dates, into VT
3. **Target Date Fund:** Appropriate Vanguard target date fund for my age
4. **60/40 Portfolio:** 60% VTI / 40% BND with annual rebalancing

**Analysis Required:**
- Total return comparison (including dividends and fees)
- Risk-adjusted return (Sharpe ratio equivalent for each)
- Maximum drawdown comparison
- Time spent managing vs. passive alternative
- Honest verdict: Is my active strategy worth continuing?
- **Decision Framework:** At what point should I switch to passive? Define the specific underperformance threshold and timeframe.

**Role:** You are a strategic investment advisor building contingency plans for different market environments.

**My Current Situation:**
- Portfolio: [holdings and allocations]
- Cash reserves: [amount available to deploy]
- Monthly investment capacity: [amount]
- Time horizon: [years]
- Biggest fear: [what market scenario keeps you up at night]

**Build If-Then Playbooks For:**

1. **Bull Market Continuation (+15-25% year):**
   - When to take profits and how much
   - How to avoid FOMO-driven concentration
   - Rebalancing triggers

2. **Mild Correction (-10 to -20%):**
   - Specific buy targets and position sizes
   - What to add vs. what to avoid
   - Cash deployment schedule (don't go all-in at -10%)

3. **Bear Market (-20 to -40%):**
   - Staged deployment plan (deploy X% of reserves at -20%, -30%, -40%)
   - Tax-loss harvesting opportunities
   - What to absolutely NOT sell

4. **Sideways Grind (±5% for 12+ months):**
   - Income-generating strategies during low returns
   - Sector rotation opportunities
   - Patience framework to avoid overtrading

5. **High Inflation (>5% sustained):**
   - Portfolio adjustments (TIPS, commodities, pricing-power stocks)
   - Debt management strategy
   - Real vs. nominal return targets

For EACH scenario: specific actions, position sizes, and triggers. No vague advice.