Next video:
Loading the player...

Despite 2017's record-breaking bull market, investors are still keen on finding portfolio allocations constructed to weather the fiercest of fiscal storms. Renowned investor, best-selling author and founder of Bridgewater Associates Ray Dalio created the "All-Weather Portfolio" which he designed with ultimate balance in mind. Dalio tested his portfolio against some of history's greatest market fluctuations to insure his formula for reducing risk while maintaining returns stood the test of time. Dalio spoke with Investopedia Editor-In-Chief Caleb Silver about the four factors he uses to build the all-weather portfolio.  

Related Articles
  1. Investing

    Delivering Alpha: Ray Dalio Talks Gary Cohn, Gold and Dollar

    Ray Dalio, head of Bridgewater Associates, spoke on a number of subjects at the Delivering Alpha conference.
  2. Insights

    Ray Dalio Report: The Economic Machine and Where We Are Now

    See why hedge fund manager Ray Dalio thinks he's figured out business cycles and why the simplest answer might not always be the best one.
  3. Investing

    Billionaire Ray Dalio's Bridgewater Bets Big on ETFs: 13F Filing

    Bridgewater Associates, the firm of hedge fund billionaire Ray Dalio, took large positions in ETFs, 13F filings show.
  4. Investing

    Track Dalio’s Stock Picks Amid Trump Talk (VWO, EEM)

    Billionaire Ray Dalio is the founder of one of the world’s largest investment funds, Bridgewater Associates. According to financial accountability engine TipRanks, the $10.16 billion fund generated ...
  5. Insights

    How Did Bridgewater's Ray Dalio Get Rich?

    Learn how Raymond Dalio, founder of hedge fund company Bridgewater Associates, became a billionaire and made the Forbes 400
  6. Investing

    Billionaire Ray Dalio Pushes Gold, Citing North Korea Tensions

    The billionaire and founder of Bridgewater Associates suggests that global risks are rising as tensions flare between the U.S. and North Korea.
  7. Investing

    Diversification: My Favorite Term

    We asked world renowned investor and best-selling author Ray Dalio to share his favorite financial term. See why he chose diversification​​​​​​​.
  8. Investing

    Ray Dalio Helped Launch This Fast Food Phenomenon

    Renowned investor, best-selling author and founder of Bridgewater Associates, Ray Dalio is also responsible for helping to fund McDonald's very own Chicken McNuggets®.
  9. Insights

    Bridgewater Leader Dalio Criticizes Wall Street Journal for Distortions

    Dalio, the head of Bridgewater Associates, has accused the publication of printing a biased story about his firm.
  10. Investing

    Billionaire Ray Dalio's Bridgewater Exited Amazon, Coke, and Gap: 13F Filing

    Ray Dalio's Bridgewater Associates sold stakes in Amazon and bought up new positions in Alphabet and McDonald's.
Hot Definitions
  1. Return On Equity - ROE

    The profitability returned in direct relation to shareholders' investments is called the return on equity.
  2. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  3. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  4. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  5. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  6. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
Trading Center