All-Weather Portfolio

Ray Dalio's risk-parity approach designed to perform in any economic environment.

Allocation Breakdown

5 Assets

Long-Term US Bonds

US Stocks

Intermediate-Term Bonds

Gold

Commodities

Target Allocation

Asset Class	Weight	Example Ticker
Long-Term US Bonds	40%	TLT
US Stocks	30%	VTI
Intermediate-Term Bonds	15%	IEI
Gold	7.5%	GLD
Commodities	7.5%	DBC

Risk Level

Low to Moderate

Rebalance Frequency

Quarterly

Advantages

Low drawdowns historically
Performs across economic environments
Built-in inflation protection
Well-diversified across asset classes

Disadvantages

Heavy bond allocation limits upside
Complex to implement with 5 assets
Commodity allocation can be volatile
Underperforms in strong bull markets

About This Portfolio

The All-Weather Portfolio was designed by Ray Dalio to perform reasonably well across all economic environments — growth, recession, inflation, and deflation. It uses risk parity principles, allocating more to bonds to balance the higher volatility of stocks and commodities.

Historical Context

Created by Ray Dalio of Bridgewater Associates, the world's largest hedge fund. The public version was shared by Tony Robbins in 2014. It's based on Bridgewater's risk parity approach used since the 1990s.

Who It's For

Investors who prioritise stability and want protection across different economic regimes. Good for those uncomfortable with large drawdowns.

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