I have seen many people talk about Ray Dalio's "All Weather Portfolio". Can I find out what are the pros and cons of it?

For ultra high net worth clients, they prefer something that is less volatile and steady growth. That's the pro of the strategy.

As for the con, you may scarifice a bit on the gains because you're equally hedged across certain assets classes. The gains may be lower. ​​​

Hi Anon,

The benefits of investing in the All-Weather strategy are many. Not only does it provide you returns in favourable and unfavourable market conditions due to the balanced and asset allocation, but also provides exposure to diversified asset classes. The portfolio coined by the legendary investor, Ray Dalio, is a blueprint that many have used since to allocate assets in a manner crafted to help you make money in any kind of economic environment. In the last 10 years, Dalio’s portfolio showed a 7.65% compound annual return (last update: October 2019). From the period of 1984 to 2013, Dalio’s strategies earned him a positive return 26 out of 30 years, with an average annual return of 9.7%.

The portfolio has an asset allocation of:

• 55% Fixed income (10% inflation-linked treasuries, 30% long-duration bonds, 15% 3-7yr duration bonds)

• 30% Equity (Broad US market ETF, e.g. S&P 500, total stock market ETF, etc)

• 15% Commodities (Gold, and/or broad commodity tracking ETF)

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I hope this helps you make the right decision.​​​