Ray dalio all weather fund

Ray dalio all weather portfolio pdf

Imagine a portfolio that you can own for life. A portfolio that does well during inflation and during deflation. A portfolio that works in economic growth and economic stagnation. A portfolio for the best of times and the worst of times. This is the idea behind the All Weather Portfolio. The All Weather Portfolio is an investment portfolio whose purpose is to perform well under different economic environments.

Why this particular mix of assets?

Ray dalio portfolio 2024

Because this mixture performs well under the four economic environments highlighted by Dalio :. From this matrix we can then determine which assets do best under which economic regime. For example, during periods of rising prices, commodities and gold tend to do well and during periods of falling prices, bonds tend to do well. During periods of rising growth, stocks tend to do well and during periods of falling growth, bonds tend to do well.

Taking this information we can now fill in the matrix with the best performing asset under each economic environment :. Since all four economic environments do not occur with the same frequency i. While this is an oversimplification of how assets react during different economic regimes, it gets at the core idea behind the All Weather Portfolio.

Every asset performs differently based on what is happening in the macroeconomic environment, so your portfolio allocation should reflect this. This might seem like an odd way to invest, but understanding the history of the All Weather Portfolio provides more clarity.