How to build an all-weather portfolio

17 min Read Published: 01 Feb 2019

I was asked an interesting question recently regarding how to implement the all-weather portfolio, made famous by Ray Dailo and by the book 'Money - Master the Game' written by Tony Robbins.

The portfolio is supposed to perform well in any kind of market environment be it a bull or bear market. That doesn't mean it always makes a positive return. Just for reference, the portfolio is constructed as follows:

  • 30% invested in domestic stocks
  • 40% invested in long-term government bonds
  • 15% invested in intermediate-term bonds
  • 7.5% invested in commodities
  • 7.5% invested in gold

Of course, it is an American concept so it was focused on buying US stocks and US Treasuries. The problem for UK investors is the additional currency risk they are exposed to when buying those assets denominated in US dollars.

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