Thanks a lot! After reading Tony Robbins' book, I tried to replicate Dalio's portfolio and thought I had failed when looking at the overall return. Now I realize I was pretty close looking at the one you're presenting here. Thanks for your video and the refresher on Dalio's All Weather approach!
Look up the similar "cockroach portfolio" and you'll see this is not true. Any given year may not be as impressive as the best performing asset, but you also don't get crushed in bad years.
What do you think about the etf VDC? I’ve seen it hasn’t dropped as much during recessions but idk if the fact that is only one sector (consumer staples) is risky😞 I am looking for a non volatile etf, is VDC better than SCHD??
thanks for the effort and sharing. i am an appreciative subscriber. i am also someone six weeks away from semi-retirement. i have spent the past few months moving my asset allocation from a growth mindset to a capital preservation outlook. be it the AWP or the Golden Butterfly or the Rick Ferri Permanent portfolio, I can truly understand the need for capital preservation with just a percentage of equity for longterm growth. thumbs up.
Nice video! I'd like to implement an all weather portfolio with ECR3 / IUSN / VUAA / EUNA and LYTR. Do you think it can be a nice implementation with a bit of European bonds and avoiding just gold as the single commodity? Or do you think that I might have too many modifications with respect to the standard all weather portfolio? Do you have any suggestion? 😊
I've liked the idea of levering up the All Weather Portfolio for someone still in accumulation. It seems like a risk parity style portfolio (like the AWP) is primed for leverage for accumulation phase investors. Is it worthwhile for an accumulator to invest in a leveraged AWP or should they just stick to 100% equities?
Agreed, Mark. I'll take levered diversification over concentration. I discussed this idea here: www.optimizedportfolio.com/return-stacking/ I also discuss some leverage ideas for the AWP in the blog post if you didn't already know. I plan to do a separate video for that idea.
Thanks for the video but as the All Weather portfolio is outdated I would like to know which or which 3 portfolios would be the best (performance) at the moment over 30-40 years seen.
High taxation is the downside to the All Weather. I would increase stocks to 50% and drop the bonds to 35% (25% long term, 10% intermediate). this cuts taxes down 40%.
Dalio and Bridgewater are the original source AFAIK, going back decades. Though the phrase isn't trademarked or anything and can be interpreted differently by different people.
Dalio's proposed portfolio got destroyed in the last 3 years because it took in a lot of duration risk. And gold has been a bust. Bernstein's No Brainer portfolio did much better. Duration risk is real.
And before that, it did surprisingly well, with longer bonds boosting its returns. Fundamentally though, it's loosely based on risk parity, for which the greater vol of those bonds is needed. I'd encourage you to not succumb to recency bias - especially a mere 3 year period, which is just noise - when evaluating any particular strategy.
@@OptimizedPortfolio From 1981 to about 2020, the Fed engineered a (mostly) decline in interest rates, which was a big help to longer term bonds creating capital gains along with earned interest. That is recency bias my friend, the wrong belief that the bond party will continue given the Fed has been raising interest rates in the past two years due to rising inflation and massive increase in US government deficits and national debt.
