Rookie Review Of Ray Dalios' "All Weather Portfolio"
Ray Dalio
Bridgewater Capital Founder: 165 Billion Under Management
-"Systematic biases" "systematically long everything"
-The majority of the portfolio are indirectly related to each other.
-Bought gold to hedge off against volatility in the stock market and overall safe gamble along with another commodity. Should we go 15% GOLD?
-Utilize Andrews Pitchfork for a decent price point on gold?
-Within Tony Robbins book he states that within the interview with Ray Dalio that the portfolio is leveraged a good bit but did not mention within which particular sector. This portfolio focusing mostly on hedging off against volatility so my best bet would be leveraged in bonds. How much? I'll never know until I meet him.
-The majority of the portfolio are indirectly related to each other.
-Bought gold to hedge off against volatility in the stock market and overall safe gamble along with another commodity. Should we go 15% GOLD?
-Utilize Andrews Pitchfork for a decent price point on gold?
-Within Tony Robbins book he states that within the interview with Ray Dalio that the portfolio is leveraged a good bit but did not mention within which particular sector. This portfolio focusing mostly on hedging off against volatility so my best bet would be leveraged in bonds. How much? I'll never know until I meet him.
Volatility-Based Portfolio
Ray Dalio's approach is unlike any other. Tony Robbins within his book "Money- Master the Game".
Rays' mantra stated by Tony Robbins is "Expect Surprises" this mindset is what led Ray Dalio to his "All Weather Portfolio". Rays "All Weather Portfolio" is more so a defensive than offensive portfolio but one with astounding returns for being developed as is.
-As stated by Ray Dalio in Tony Robbins interview he states that the 50% Bonds 50% stocks portfolio or the 100-year-old portfolio where you purchase more bonds the older you get is totally wrong. The majority believe that they are hedging off against risk and taking a safer bet with a 50% bond 50% Stock when in actuality since stocks are exceptionally more volatile (3x as much) they are practically taking a 5% stake in bonds and a 95% stake in stocks based off of volatility.
- I highly suggest watching Ray Dalios youtube video he made to explain his macro economic ideology. Very simple to understand and amazing information. https://www.youtube.com/watch?v=PHe0bXAIuk0
4 things that move the price of assets.
- Inflation
- Deflation
- Rising Economic Growth, and
- Declining Economic Growth
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Growth | Inflation | ||||||
| Rising | Stocks | Commodites/Gold | ||||||
| Corporate Bonds | Inflation Linked Bonds or TIPS | |||||||
| Commodities/Gold | ||||||||
| Falling | Treasury Bonds | Treasury Bonds | ||||||
| Inflation Links Bonds(TIPS) | Stocks | |||||||
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