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 2026-07-03 (54.5 years): 7.7% CAGR, 0.98 Sharpe, -22.5% max drawdown, 6.8% volatility.
- Type
- Fixed Allocation
- Author
- Ray Dalio
- Rebalancing
- Annual
- Risk
- Conservative
- Period
- 1971-12-31 to 2026-07-03
- CAGR
- 7.7%
- Sharpe
- 0.98
- 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.
All Weather (Dalio): frequently asked questions
- What is All Weather (Dalio)?
- Designed for all economic seasons: 30% stocks, 55% bonds, 15% commodities. The retail version of Bridgewater's risk-parity approach.
- Who created the All Weather (Dalio) strategy?
- All Weather (Dalio) was developed by Ray Dalio. It is based on Dalio, R. / Bridgewater Associates. The All Weather Story (2012).
- What is the historical return and maximum drawdown of All Weather (Dalio)?
- Backtested from 1971-12-31 to 2026-07-03, All Weather (Dalio) returned 7.7% CAGR with a -22.5% maximum drawdown and a Sharpe ratio of 0.98. Past performance does not guarantee future results.
- How often is All Weather (Dalio) rebalanced?
- All Weather (Dalio) is rebalanced annual. BestFolio publishes the updated allocation signal each period.
- Is All Weather (Dalio) a fixed or tactical strategy?
- All Weather (Dalio) is a fixed-allocation (strategic) portfolio: it holds a set allocation and rebalances on schedule rather than rotating based on market signals.
Backtest Performance (1971-12-31 to 2026-07-03)
| Metric | All Weather (Dalio) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 7.7% |
| Maximum Drawdown | -22.5% |
| Sharpe Ratio | 0.98 |
| Sortino Ratio | 1.50 |
| Annualized Volatility | 6.8% |
| Calmar Ratio | 0.34 |
| Total Return | 5485.9% |
| Backtest Period | 54.5 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
Track All Weather (Dalio) in Your Portfolio
Sign up for BestFolio to get monthly rebalancing signals, blend strategies into custom portfolios, and receive alerts when allocations change.
Related strategies
Related research
- The poor man's trend program: three ETFs, one rule, 53 years of dataBeyond Passive asked how close you can get to a futures trend program with three plain ETFs and one monthly trend rule. I rebuilt it on our engine back to 1972: the drawdown cut is real, robust to the signal choice, and honest about where the edge comes from.
- We Extended Our Backtest to 1974. Here Is the 4% Rule Through the 1970s Stagflation.A few weeks ago we measured safe withdrawal rates across 50+ tactical strategies, and the fairest critique was that our data started in 1990. So we extended HAA's backtest to 1974, through the stagflation that nearly broke the 4% rule. The safe rate came down, and that makes it more believable.
- Which TAA Strategies Actually Work in Europe: A UCITS Substitution GuideEuropean investors hit a wall the moment they try to run a US TAA strategy through IBKR: PRIIPs blocks AVUV, DBC, and most US-domiciled ETFs from retail purchase. The substitutes exist on XETRA and LSE, but they're not all equal. Some strategies translate cleanly (HAA, GEM, Permanent Portfolio). Others lose 50 to 100bps of CAGR per year through methodology drift on the small-cap-value sleeve. A few don't really translate at all. Here's the working playbook, split into three tiers.