Ray Dalio's "All Weather" Strategy Adapted for Switzerland

[cedric]

Good morning,

I recently discovered investor Ray Dalio's brilliant "All Weather" strategy.
This is explained in its simplified version in Tony Robbins' new book "MONEY Master the Game: 7 Simple Steps to Financial Freedom" on page 441.

So my question is:

How do you implement it while being based in Switzerland?

Literally, totally dependent on the dollar? With which “commodities”? Which “intermediate bonds” and “long term bonds”?

For gold and stocks, it's relatively easy (for stocks, the Vanguard S&P 500 ETF).

Would you do this from SwissQuote or PostFinance to keep costs to a minimum?

Thank you in advance for your feedback.

With pleasure,
Cedric

[Jerome]

Hello Cedric

I don't know this strategy well but I just took a look out of curiosity.
Here is a link to understand what it is: http://learnbonds.com/all-weather-portfolio-ray-dalio/
The idea is therefore roughly to have assets which would cover the different risks depending on the economic cycles.
It reminds me curiously of Harry Browne's permanent portfolio: http://en.wikipedia.org/wiki/Fail-Safe_Investing
which proposes to invest 1/4 in each of the assets: gold, bonds, shares and cash.

In short, I am not a big fan of gold and bonds and I only hold cash when the market is too high to buy cheap stocks (like now). Gold, bonds and cash do not create value unlike stocks.

So ultimately I am not too keen on this type of strategy because I start from the principle that increasing dividends are essentially a "4 seasons" strategy that performs well in all types of economic cycles.

Here is one of my articles from that time that talks about it

The advantages of dividend payers

[cedric]

Hello Jerome,

Thank you very much for your interesting feedback and the link to one of your articles talking about it.

Here is the recommended allocation for this strategy (cf. http://www.seeitmarket.com/back-testing-tony-robbins-all-weather-portfolio-13895/ ) :
30% Stocks
40% Long-Term Bonds
15% Intermediate-Term Bonds
7.5% Gold
7.5% Commodities

Has any forum reader implemented such a strategy from Switzerland?

PS
In the meantime I found this page with some ETF recommendations:
http://seekingalpha.com/article/2700765-can-you-handle-an-all-weather-portfolio

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