![]() Another reason is economic theory does not always translate well to the real world. In fact, definitions of these economic events vary quite a bit from expert to expert, so we don’t advise getting bogged down in the details but think of general economic activity in the U.S market. There are rules of thumb, but it is never with certainty. ![]() It is hard to say during what season which assets perform better than others. General bear market due to lower than expected economic growth.General bull market due to higher than expected economic growth. ![]() Decreasing prices due to slow economic growth or when central banks put anti-inflationary measures such as high-interest rates. Rising prices due to higher than expected economic growth or the result of monetary stimulus from the central banks. When a particular financial season prevails, certain assets will increase in value more than others.Īccording to Dalio, the four seasons are: Here is the portfolio composition breakdown:ĭalio has a theory that four economic seasons impact the value of different assets. This portfolio composition was not known until life coach Tony Robbins interviewed Ray for his new book. You can read more about Ray on his wiki page. His fund became the biggest in the world in 2005. Dalio is the founder of Bridgewater Associates, a massive hedge fund with over $160 billion under management. The portfolio was famously created by Ray Dalio. We have analyzed its historical performance, and so far, it has held up to its name. Bull markets, bear markets, sideways markets, recessions, collapses, inflation and deflation, and so on. The idea is that the portfolio can handle any financial climate. It is the ultimate get-rich slow portfolio, and everybody should consider it for their investment journey. Portfolio became extremely popular after Tony Robbins wrote about it in MONEY Master the Game: 7 Simple Steps to Financial Freedom. In this post, we want to discuss the most popular portfolio on the internet, the “All Weather” Portfolio. We discuss many portfolio ideas on this site so you can make more informed investment decisions. The All Weather Portfolio in 2021 Table of Contents Introduction
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