All Weather (Dalio) at a glance
All Weather (Dalio) is a fixed-allocation portfolio by Ray Dalio across US Equity, Long-Term Treasuries, Intermediate Treasuries, Gold, rebalanced annual. Backtested 1971-12-31 to 2026-06-18 (54.4 years): 7.7% CAGR, 0.99 Sharpe, -22.5% max drawdown, 6.8% volatility.
- Type
- Fixed Allocation
- Author
- Ray Dalio
- Rebalancing
- Annual
- Risk
- Conservative
- Period
- 1971-12-31 to 2026-06-18
- CAGR
- 7.7%
- Sharpe
- 0.99
- Max Drawdown
- -22.5%
- Volatility
- 6.8%
All Weather (Dalio) — Fixed Allocation Portfolio
The All Weather portfolio was designed by Ray Dalio and Bridgewater Associates to perform well across all economic environments. The core insight is risk parity: each economic regime should be equally balanced in terms of risk contribution. The 55% bond allocation provides the deflation/recession hedge, 30% equities cover growth, and 15% commodities (gold + broad) protect against inflation.
Backtest Performance (1971-12-31 to 2026-06-18)
| Metric | All Weather (Dalio) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 7.7% |
| Maximum Drawdown | -22.5% |
| Sharpe Ratio | 0.99 |
| Sortino Ratio | 1.50 |
| Annualized Volatility | 6.8% |
| Calmar Ratio | 0.34 |
| Total Return | 5589.6% |
| Backtest Period | 54.4 years |
Strategy Details
- Type
- Fixed / Strategic
- Rebalancing
- annual
- Risk Level
- conservative
- Variants
- 1
- Author
- Ray Dalio
- Source
- Dalio, R. / Bridgewater Associates. The All Weather Story (2012)
Asset Classes
- US Equity
- Long-Term Treasuries
- Intermediate Treasuries
- Gold
- Commodities
Categories
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