> ## Documentation Index
> Fetch the complete documentation index at: https://tendrill.ai/docs/llms.txt
> Use this file to discover all available pages before exploring further.
# Allocation & Exposure Analysis
> Understanding your sector weights and portfolio concentration
## Know what you own
Understanding your portfolio allocation - how your money is distributed across different stocks, sectors, and asset classes - is key to managing risk and achieving your investment goals. Tendrill helps you see the big picture.
## What is allocation?
**Allocation** is how your portfolio is divided:
* **By position**: How much is in each individual stock/ETF
* **By sector**: How much is in technology vs healthcare vs financials
* **By asset class**: How much is in stocks vs bonds vs cash
* **By geography**: Domestic vs international exposure
**Why it matters:** Allocation determines your risk profile. A portfolio that's 80% in one stock behaves very differently than one spread across 50 positions.
## Asking about your allocation
### Position breakdown
```
You: Show me my allocation
Tendrill: 📊 Your Portfolio Allocation
BY POSITION (Top 10 of 15):
1. NVDA - $44,500 (33.9%) ⚠️ Concentrated
2. MSFT - $19,800 (15.1%)
3. AAPL - $14,600 (11.1%)
4. VOO - $12,300 (9.4%)
5. GOOGL - $8,400 (6.4%)
6. AMZN - $7,200 (5.5%)
7. TSLA - $6,200 (4.7%)
8. VTI - $5,100 (3.9%)
9. JNJ - $4,800 (3.7%)
10. JPM - $4,200 (3.2%)
... and 5 more positions (3.1% total)
Total: $131,200
⚠️ Note: Your largest position (NVDA) is over 30%
of your portfolio. This means NVDA moves will
significantly impact your overall performance.
```
### Sector breakdown
```
You: What's my sector exposure?
Tendrill: 📊 Sector Allocation
Technology: 65.2% ████████████████████
Healthcare: 8.5% ██
Financials: 6.8% ██
Consumer: 6.2% ██
Industrials: 5.1% █
Communication: 4.0% █
Other: 4.2% █
Analysis:
• You're heavily weighted toward tech (65%)
• S&P 500 is ~30% tech - you're 2x overweight
• Low exposure to defensive sectors (utilities, staples)
• This allocation performs well in bull markets but
may be volatile in corrections
Want suggestions for diversification?
```
### Asset class breakdown
```
You: Show me stocks vs bonds
Tendrill: 📊 Asset Class Allocation
Stocks: 91.2% ████████████████████████████
Bonds: 5.8% ██
Cash: 3.0% █
Your allocation:
• $119,700 in stocks (individual + ETFs)
• $7,600 in bonds (BND, AGG)
• $3,900 in cash/money market
For context:
• This is an aggressive allocation
• Traditional "balanced" is often 60% stocks / 40% bonds
• Younger investors often hold more stocks; near-retirees less
Risk profile: Growth-oriented / High volatility tolerance
```
## Understanding concentration risk
### What is concentration risk?
When too much of your portfolio is in one position, that position's ups and downs disproportionately affect your whole portfolio.
```
Scenario: NVDA drops 20%
Portfolio A (NVDA is 5% of portfolio):
• NVDA impact: -20% × 5% = -1% portfolio
• Total damage: Minimal
Portfolio B (NVDA is 35% of portfolio):
• NVDA impact: -20% × 35% = -7% portfolio
• Total damage: Significant
Same stock, same drop, very different outcomes.
```
### Concentration warnings
Tendrill automatically flags concentration issues:
```
You: Is my portfolio balanced?
Tendrill: 🔍 Portfolio Balance Analysis
⚠️ CONCENTRATION ALERTS:
Single-stock risk:
• NVDA at 33.9% exceeds typical 10% guideline
• Your top 3 stocks = 60% of portfolio
Sector concentration:
• Technology at 65.2% (vs 30% in S&P 500)
• You're making a big bet on tech continuing to outperform
Correlation risk:
• NVDA, MSFT, AAPL, GOOGL are all large-cap tech
• They tend to move together in market stress
✅ POSITIVES:
• Some diversification through VOO and VTI
• Small bond allocation provides slight buffer
• 15 total positions (reasonable number)
SUMMARY:
Your portfolio has done well because tech has done well.
But a tech correction would hit you harder than most.
```
## Portfolio comparison tools
### Compare to benchmarks
```
You: How does my allocation compare to the S&P 500?
Tendrill: 📊 Your Portfolio vs S&P 500
Sector You S&P Difference
----------------------------------------
Technology 65% 30% +35% (overweight)
Healthcare 9% 13% -4% (underweight)
Financials 7% 13% -6% (underweight)
Consumer Disc 6% 10% -4% (underweight)
Communication 4% 9% -5% (underweight)
Industrials 5% 8% -3% (underweight)
Other 4% 17% -13% (underweight)
Key takeaway:
You're making an active bet on technology at the
expense of almost every other sector. If you want to
match the market, you'd need to reduce tech and add
to financials, healthcare, and consumer.
```
### Historical allocation drift
```
You: Has my allocation changed over time?
Tendrill: 📊 Allocation Drift (Past 12 Months)
Jan Now Change
--------------------------------------
Technology 52% 65% +13%
Healthcare 12% 9% -3%
Financials 10% 7% -3%
Other 26% 19% -7%
What happened:
• NVDA grew from 18% to 34% (price appreciation)
• Other sectors shrunk as % (not losses, just
slower growth relative to tech)
This is called "drift" - when winners grow and
losers shrink, your allocation naturally shifts.
Some investors rebalance periodically to maintain
target allocations. Want to learn about rebalancing?
```
## Rebalancing concepts
### What is rebalancing?
Rebalancing means selling some of what's grown and buying more of what hasn't, to return to your target allocation.
```
You: Should I rebalance?
Tendrill: 🔄 Rebalancing Analysis
Current vs Target (example 60/30/10):
Current Target Action needed
---------------------------------------------
Stocks 91% 60% Sell ~$40k
Bonds 6% 30% Buy ~$32k
Cash 3% 10% Add ~$9k
If your target were "whatever I have now":
• NVDA at 34% - would need to trim ~$26k to get to 10%
• Tech at 65% - would need to sell ~$46k to get to 30%
Things to consider:
• Selling winners triggers taxes (in taxable accounts)
• NVDA might keep going up (or down)
• Rebalancing reduces risk AND potential returns
This is not advice - just math. Talk to an advisor
about whether rebalancing makes sense for your
situation and tax implications.
```
## FAQ about allocation
There's no universal answer - it depends on your age, goals, risk tolerance, and time horizon. Generally:
* **Younger investors**: More stocks, higher risk tolerance
* **Near retirement**: More bonds, capital preservation focus
* **Diversified**: No single position over 10%, broad sector exposure
Usually through success! If you bought NVDA at $200 and it went to $900, it naturally becomes a bigger part of your portfolio without you buying more. This is good for returns but increases risk.
It's a personal and tax decision. Rebalancing reduces risk but caps potential gains. In taxable accounts, selling triggers capital gains taxes. Many investors rebalance gradually or only in retirement accounts.
## Next steps
How Tendrill summarizes market events
Set allocation-based alerts