All Seasons Portfolio

The All Seasons Portfolio by Ray Dalio is a simplified version of his famous All Weather fund that can be easily implemented by everyday investors.

Asset Allocation


  • 30% Total Stock Market
  • 40% Long Term Bonds
  • 15% Intermediate Bonds
  • 7.5% Commodities
  • 7.5% Gold
Asset Notes

The Portfolio Charts tools use round numbers, so I reallocated the portfolio slightly while preserving the original design intent as closely as possible.

Local Interpretations

Find country-specific versions and appropriate ETFs using the Performance charts.

Author


<strong>Ray Dalio</strong>
Ray Dalio

Ray Dalio is the founder and chief investment officer of the world’s largest hedge fund, Bridgewater Associates. You can read about his thoughts on the All Seasons Portfolio in the Tony Robbins book MONEY Master the Game.

Overview


The All Seasons Portfolio is built on the philosophical foundation of Dalio’s All Weather Fund, a popular hedge fund among institutional investors. According the All Weather Story, the original goal of the fund was to answer a deceptively simple question:

What kind of investment portfolio would you hold that would perform well across all environments, be it a devaluation or something completely different?

Dalio and his Bridgewater team concluded that while individual assets are unpredictable, they react in understandable ways based on cash flows in the prevailing economic environment. They arranged those environments into four quadrants:

All Weather Fund four quadrants, the foundation for the All Seasons Portoflio

By filling each quadrant with assets that respond to each economic condition and balancing the asset weights to achieve risk parity for each situation, Dalio designed a portfolio capable of succeeding no matter what happens in the markets.

While the institutional All Weather fund includes a lot of active management and a number of investments not available to everyday investors, the All Seasons portfolio is a simplified version that he recommends to individuals looking to build an autopilot portfolio using the same All Weather philosophy.

Featured Discussion

Books


Books about the All Seasons Portfolio, and others by Ray Dalio

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Articles


Insights that mention the All Seasons Portfolio

Alternatives


Portfolios with a similar structure or design intent

Permanent Portfolio — A similar investing philosophy built around economic risk parity

Larry Portfolio — Similar portfolio structure to balance volatility risk between assets

Swensen Portfolio — Another portfolio that uses institutional investing concepts

Performance


Change the home country to translate the portfolio to local assets, currency, and inflation.