All Weather Portfolio 2022: How Is It Doing With Inflation, Rising Rates, & The Everything Bubble

by Corey Philip
February 3, 2022

The All Weather Portfolio coined by the hedge fund master is supposed to be resilient in all market conditions.  

I wanted to take a look at how the All Weather Portfolio is doing in this weird economic climate we fell into in the end of 2021, and has started 2022 of rocky.

TLDR;

too long didn't read (or watch)....

  • The All Weather Portfolio is comprised of 5 asset classes; long term treasuries (40%), US equities (30%), intermediate treasuries (15), gold (7.5%), commodities (7.55).
  • Ray Dalio sees this allocation has best suited to perform in 4 economic seasons.
  • You could use the ETFs, TLT, VTI, VGIT, DBC & GLD to easily build the portfolio at a low cost.  
  • Backtested to 2007 the All Weather Portfolio returns 7.09% annually with a max drawdown through the great financial of 14.75%
  • Since 2007 it slightly outperforms a global 60/40 portfolio with less than half the drawdown.
  • Jan 2021 - Jan 2022 (13 full months), the 60/40 global portfolio has outperformed the all weather portfolio.  
  • I personally like the concept of the All Weather Portfolio.  

About the author

Corey Philip

Corey Philip is a small business owner / investor with a focus on home service businesses.

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