Portfolio live performance USD currency the Ray Dalio all-weather portfolio is a medium risk portfolio and can be implemented with five ETFs
It's exposed for 30% on the stock market and for 15% on commodities
the Ray Dalio All weather portfolio can be implemented with the following ETFs returns are calculated in USD
assuming March 2024 return is calculated on the hypothesis of a newly built portfolio with the starting asset allocation an
investment of one dollar since March 1994 now would be worth eight
$37 with a total return of seven hundred and thirty seven point one four percent
seven point three four percent annualized The inflation adjusted capital now would be three
$97 with a net total return of two ninety six point five six percent four point seven zero percent annualized an
investment of one dollar since January 1871 now would be worth one one six four eight
Forty-three dollar with a total return of one million 164 thousand seven hundred and forty two point eight five percent six point three zero percent annualized
The inflation adjusted capital now would be four hundred sixty nine $36 with a net total return of forty six thousand eight hundred thirty six point four one percent four point one zero percent
annualized Annualized portfolio return. It's the annualized geometric mean return of the portfolio
Deepest longest drawdown a drawdown refers to the decline in value from a relative peak value to a relative trough
The deepest or maximum drawdown is the maximum observed loss from a peak to a trough of a portfolio
Before a new peak is attained The longest drawdown is the period observed from a peak to the subsequent peak with the greatest duration
Longest negative period it's the maximum period for which an overall negative return has been observed
Standard deviation. It's a measure of the dispersion of returns around the mean
Sharp ratio. It's a measure of risk adjusted performance of the portfolio
It's calculated by dividing the excess return of the portfolio over the risk-free rate by the portfolio standard deviation
The risk-free rate here considered is the one three memph T bill return
Sortino ratio another measure of risk adjusted performance of the portfolio It's a modification of the sharp ratio same formula
But the denominator is the portfolio downside standard deviation Ulcer index it's a measure of downside risk that quantifies the depth and duration of drawdowns in an investment portfolio
You'll continue adjusting your withdraw monthly for inflation perpetual withdrawal rate PWR it's the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment
Preserving the original invested capital adjusted for inflation to Talking about withdrawal rates. How would you manage your early retirement with the Ray Dalio all-weather portfolio
portfolio components correlation Correlation measures to what degree the returns of the two assets move in relation to each other
Seasonality in which months is it better to invest in Ray Dalio all-weather portfolio
Both the average return and the gain frequency win percent are useful to get an idea of what happened in the past