All weather portfolio

Investment Summary
The all weather portfolio was designed by Ray Dalio of Bridgewater. The portfolio holds a fixed allocation in different asset classes aiming to achieve consistent returns with low volatility in four different economic environments: economic growth, inflationary environments, deflationary environments and recessions. Different asset classes experience different volatility levels (for example US Treasuries tend to be less volatile than US Stocks). Hence, the portfolio is structured so that more volatile assets tend to have smaller allocations.

Investment Performance
Investment Return (?):9.60% Volatility (?):7.9% Sharpe Ratio:0.61 Maximum Drawdown:-13.10%
Investment’s Fundamental Concept:
The all weather portfolio is designed by having the following allocations: 30% allocation in US equities through SPY ETF, 15% to US treasury bonds through the IEF ETF, 40% to long-term treasuries through the TLT ETF, 7.5% to commodities through the DBC ETF and 7.5% to Gold. The portfolio is rebalanced annually.

All weather portfolio performance



All weather portfolio allocation

Other Investment Strategy Characteristics:
Investment Type:Buy & Hold Investment Risk:3/5 Average Backtest Range:5-10 years Rebalancing period:Annual
Investment Strategy Markets:
  • U.S. equities
  • U.S. Bonds
  • Commodities
  • Gold
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