All-Weather Portfolio

  • 14 Jun
    Step-By-Step Guide To Building An All-Weather Portfolio In Today’s Environment

    Step-By-Step Guide To Building An All-Weather Portfolio In Today’s Environment

    • I’ll explain what an all-weather portfolio is and why it’s important to think all-weather in this macro environment.
    • It’s important to understand the difference between portfolio asset class diversification and risk diversification.
    • I’ll use imaginary risk calculations to illustrate how to properly build an all-weather portfolio.

    Introduction

    History has taught us that we always have to expect the unexpected. For example, I don’t know whether the U.S. economy is going to continue to expand or whether interest rates will be lower or higher in the future. I can make estimations, account for probabilities, and then invest accordingly, but still, I have to be prepared for anything. More →