Legendary Investors and their Genius in Asset Allocation during Turbulent Times

4. Ray Dalio and the All-Weather Portfolio

Ray Dalio, the founder of Bridgewater Associates, believes in the concept of risk parity. He created the All-Weather Portfolio, which aims to perform well across all economic environments. This portfolio consists of 30% stocks, 40% long-term bonds, 15% intermediate-term bonds, 7.5% gold, and 7.5% commodities. During the 2008 financial crisis, when most portfolios were bleeding, Dalio's All-Weather Portfolio managed to stay afloat, proving the effectiveness of his asset allocation strategy.