Core Viewpoint - The article discusses Ray Dalio's investment strategies, particularly the All Weather strategy, and how his life experiences shaped his investment philosophy [3][5][8]. Group 1: Ray Dalio's Background and Investment Journey - Ray Dalio graduated high school in 1966 and invested heavily in the stock market, but faced significant losses during the market downturn in the late 1960s [13][14]. - After suffering losses in the stock market, Dalio shifted his focus to commodities, particularly gold, during the 1970s bull market [16][20]. - The price of gold surged from $37 per ounce in 1971 to a peak of $850 per ounce in 1980, leading to substantial profits for Dalio initially [18][20]. - However, by the early 1980s, gold prices collapsed, and Dalio's heavy investment in commodities resulted in significant losses [21][24]. Group 2: Development of the All Weather Strategy - Dalio's investment losses prompted him to diversify his portfolio, leading to the creation of the All Weather strategy, which aims to balance risk across various asset classes [27][28]. - The All Weather strategy involves allocating different assets, including stocks, bonds, gold, and real estate, based on their risk profiles [29][30]. - This strategy is also known as the "risk parity" strategy, where each asset class contributes equally to the overall portfolio risk [32][31]. Group 3: Performance and Implementation of the All Weather Strategy - The effectiveness of the All Weather strategy improves with a broader range of asset classes, particularly those with low correlation [41][44]. - Bridgewater Associates, Dalio's firm, offers both private and public versions of the All Weather strategy, with the private fund generally performing better [45][46]. - In 2025, Bridgewater launched a public ETF for the All Weather strategy in the U.S. market [47]. - The All Weather strategy has also been applied in the Chinese market, with a similar ETF strategy yielding approximately 60% returns over nine years [50][51]. Group 4: Advantages and Usage of the All Weather Strategy - The All Weather strategy is recognized for its stability and strong risk management, especially during periods of high asset valuation [61][62]. - It serves as a robust investment approach during the late stages of bull markets when single assets may experience significant volatility [64].