Core Viewpoint - The article discusses the unprecedented market turmoil in early 2025 due to high tariffs imposed by Trump on major trade partners, leading to significant declines in global stock markets and highlighting the need for a robust investment strategy to navigate such volatility [1][2]. Group 1: Market Impact - Trump's announcement of new tariffs, reaching up to 60%, caused immediate panic in global markets, with the S&P 500 index dropping over 3% in a single day, erasing nearly $1.7 trillion in market value [1]. - Following China's retaliatory tariffs, the Asia-Pacific stock markets experienced severe declines, with the Nikkei index falling nearly 8% and triggering a market halt [1]. - The market turmoil affected various asset classes, leading to panic selling in equities, pressure on U.S. Treasury markets, and even impacting gold prices due to a stronger dollar [1]. Group 2: Investment Strategy - The article introduces Ray Dalio's All Weather Strategy, which aims to ensure that assets appreciate in any economic environment, providing a stable investment approach amidst market fluctuations [2][3]. - A simplified version of the All Weather Strategy is proposed using the "Snowball Three-Part Method," allowing domestic investors to replicate the strategy more easily [3]. Group 3: Asset Allocation - The proposed asset allocation includes 25% in equity assets, 50% in bond assets, and 25% in commodity assets, specifically highlighting the role of gold as a traditional safe haven during market uncertainty [5]. - The strategy leverages the low correlation between different asset classes to create a self-balancing portfolio, where bonds and gold can hedge against poor stock market performance [5]. Group 4: Performance Validation - Backtesting during the turbulent period in early 2025 showed that the All Weather replica portfolio achieved a cumulative return of 2.27%, while the Shanghai Composite Index fell by 3.42% and the S&P 500 dropped by approximately 15.8% [6]. - Over a longer period from 2022 to 2025, the All Weather strategy demonstrated a maximum drawdown of only 3.47% and an annualized return of 13.2% with a volatility of 5.51% [7]. Group 5: Conclusion - The article emphasizes the importance of asset allocation in 2025, advocating for a long-term strategy that protects wealth rather than seeking short-term gains [12]. - The All Weather strategy is presented as a means to achieve balance and diversification, which are crucial for managing uncertainty and building resilience against market shocks [12].