Putting Tony Robbin’s “all-weather” portfolio to the test

Putting Tony Robbin’s “all-weather” portfolio to the test

Putting Tony Robbin’s “all-weather” portfolio to the test The motivational speaker seems to be everywhere at the moment. WP has adapted his all-weather portfolio, itself adapted from Ray Dalio, the man behind the world’s biggest hedge fund. We hope you like it.
 
Tony Robbins giving financial advice — what’s the world coming to? 
 
Say what you will about the motivational speaker but his all-weather portfolio actually makes a whole lot of sense. Especially when you consider it’s adapted from the same strategies used by Dalio’s Pure Alpha Fund, one of the most successful investment vehicles over the past 20 years. 
 
Dalio assumes there are four basis economic seasons: Inflation, deflation, rising economic growth, and declining economic growth. With that he makes his asset allocation bets. Removing leverage from the equation, Dalio has provided Robbins with a simple portfolio that’s delivered back tested annualized returns of just less than 10% over the past 30 years through the end of 2013. 
 
That’s not too shabby.
 
The Dalio/Robbins all-weather portfolio includes the following:
 
30% S&P 500 and/or other indexes for additional diversification
15% 7- to 10-year U.S. Treasuries
40% 20- to 25-year U.S. Treasuries
7.5% Gold 
7.5% Commodities
 
Here’s WPs version:
 
10% Horizons S&P/TSX 60 Equal Weight Index ETF (HEW)
10% Vanguard &P 500 Index ETF - Hedged to CAD $ (VSP)
10% FTSE Developed ex North America Index ETF - Hedged to CAD $ (VEF)
15% BMO Mid Federal Bond Index ETF Index ETF (ZFM)
40% iShares Core Canadian Long Term Bond Index ETF (XLB)
7.5% iShares Gold Bullion ETF - Hedged to CAD $ (CGL)
7.5% iShares Broad Commodity Index ETF - Hedged to CAD S (CBR)
 
How did the WP portfolio perform over the past year? 
 
A $100,000 portfolio would have achieved 7.3% through November 19. Considering 55% is invested in mid- or long-term bonds, Tony Robbins might be on to something.
 
8 Comments
  • BJM 2014-11-20 2:17:12 PM
    all weather portfolio
    Post a reply
  • Will Ashworth 2014-11-20 2:34:57 PM
    Hi BJM,

    Are you suggesting "all-weather portfolio" should be "all weather portfolio"?

    As far as I'm aware, both ways are acceptable.

    Thanks for your comment.
    Post a reply
  • Tom 2015-01-29 5:15:39 PM
    I like the allocation, but my risk profile is lean towards growth, so my equity allocation would be higher, with lower fixed income. And I wouldn't hold gold.
    Post a reply