Your Asset Allocations
Asset Name
Asset Type
Amount ($)
Percentage (%)
| Category | Target | Actual | Diff |
|---|
Original Ray Dalio All Weather Asset Allocation
The traditional All Weather portfolio is built with the following allocation:
- 30% Stocks: (US Equity Market)
- 40% Long-term Bonds: (20+ year Treasury bonds)
- 15% Intermediate-term Bonds: (7-10 year Treasury bonds)
- 7.5% Commodities: (Broad commodities exposure)
- 7.5% Gold: (Inflation hedge)
Key Principles:
- Risk Parity Approach: Each asset class contributes equally to portfolio risk.
- Economic Environment Diversification: Performs across different growth/inflation scenarios.
- Lower Volatility: Designed to reduce drawdowns compared to traditional stock/bond portfolios.
- All Weather: Works in rising/falling growth and rising/falling inflation environments.
Targeting Returns with Stock Proxies
While the All Weather portfolio traditionally uses ETFs for broad exposure, you can enhance your strategy by selecting individual stocks that serve as proxies for these asset classes. This approach allows you to "tilt" your portfolio toward higher-quality or higher-growth companies within a specific category, potentially outperforming the broad benchmark while maintaining the core diversification principles.
- Identify Proxies: Replace a broad Stock ETF with individual companies that exhibit dominant market positions.
- Categorize Effectively: Use the "Asset Type" dropdown for your selected stocks to ensure they are still counted correctly toward your desired allocation targets.
- Benchmark Comparison: Use the "Diff" column in the table above to see how your targeted stock positions compare to the baseline Ray Dalio All Weather weights.