'All-weather' portfolio
Motivation expert Tony Robbins recently created an 'all weather' portfolio through his interviews with billionaire Ray Dalio. The goal of this portfolio is not to make the maximum amount of money possible, but rather to minimize volatility and balance risk.
The model is based on the idea that certain types of investments will do well in different economic environments so the mix attempts to grow no matter what the economy is doing, according to Yahoo Finance.
The portfolio allocates 30 percent of investments into stocks that do well in times of prosperity. Then 15 percent go into intermediate Treasury bonds and 40 percent into long-term Treasury bonds, to guard against deflation. To round out the portfolio, 7.5 percent goes into both gold and commodities to protect against inflation and recession, respectively. When back-testing this portfolio from the period between 1984 and 2013, it had nearly double-digit actual returns.
