ray dario investment all weather up in 2008

However, the key question is not the returns but, does it deliver on its promise of low volatility. According the Wall Street Journal article Money Magic: Bonds That Act Like Stocks, the fund has average a return of 10% for the last 10 years. In 2001, Bridgewater Associates launched the All Weather fund. How well does the all weather strategy work? What type of assets belong in each part of the portfolio? The part of the portfolio which is geared towards profiting from rising inflation expectations will move in the opposite direction of the part of portfolio which is geared towards profiting from falling inflation expectations. The all weather portfolio seeks to reduce the volatility of investing in assets other than cash, by holding assets that naturally move in the opposite direction. However, returns for specific investments or types of assets are very volatile. The fundamental idea is that over time most investments have a return that is higher than cash. Instead its about creating a portfolio which has a similar risk profile to cash but, generates a return that is much higher than cash. The all weather portfolio is not about generating the highest possible returns. The all weather portfolio contemplates allocating a quarter of a portfolio’s risk (which is different than assets) to each of these scenarios. Different types of assets do well in each of these scenarios.The future will fall into two of the four basic economic scenarios: rising growth, falling growth, rising inflation, falling inflation.The fundamental idea is that the future is impossible to predict.What’s unique about the All Weather investing philosophy?

These portfolios don’t mimic the “all weather” fund offered by Bridgewater, whose exact investments remain secret, but invest based on the “all weather” philosophy. However, you will also see detailed “all weather” portfolios on many investing sites.

The All Weather Portfolio is an investment philosophy developed by Ray Dalio and the name of fund offered by his hedge fund Bridgewater, one of the largest hedge funds in the world.

Ray dario investment all weather up in 2008