All Seasons

Top 10 Risk Parity Resources: #2... Bridgewater (2012)

Feb 19, 2022 4 min read Resources Top 10 All Seasons

Accessible, short paper that explains the basic theory behind risk parity portfolios: allocation of risk equally across asset classes. First published use of the term “risk parity,” and great for understanding why true diversification is important.

The All Seasons Portfolio

Feb 18, 2022 3 min read Test Portfolios All Seasons

Another classic portfolio in the Risk Parity world, this is the portfolio Ray Dalio adapted for individual investors. It's a safer, more diversified version of the 60/40, with lower volatility but also slightly lower returns.