The All Weather
An allocation built for any economic 'season'.
What is 'All Weather'?
Pioneered by Ray Dalio and Bridgewater Associates, the **All Weather Portfolio** uses risk parity to ensure you are balanced across four economic seasons: rising growth, falling growth, rising inflation, and falling inflation.
The 4 Economic Seasons
Dalio argues that most investors are too concentrated in "Growth" assets (stocks). All Weather balances this by adding assets that thrive when growth fails or inflation spikes, such as Gold, Commodities, and Long-Term Bonds.
Rising Growth
Assets: Stocks, Corporate Bonds, Commodities. This is when the traditional economy is booming.
Falling Growth
Assets: Treasury Bonds, Gold. These assets protection you when the market panics or enters a recession.
Risk Parity Logic
Instead of just matching 60% Stock and 40% Bond weights, All Weather balances the **Risk** of each asset. Since stocks are more volatile than bonds, you need fewer stocks and more bonds/commodities to achieve true equilibrium.
Analyze the All Weather Strategy
Institutional Grade Math
StressTest.pro models the All Weather portfolio across 20+ years of history, including the 2000 Dot-com bust and the 2008 crash.
Analyze All Weather