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Billionaire investor and Bridgewater Associates founder Ray Dalio wants to teach the world how to build a portfolio that thrives in any climate.
In a post on X, Dalio outlined the principles of his “All-Weather Portfolio,” a strategy he designed 30 years ago to protect his family’s wealth long after he’s gone.
Dalio’s core message is a warning against two common traps: the perceived safety of cash and the temptation of market timing.
While many investors flock to money market funds or short-term government debt during “risky times,” Dalio said that cash loses purchasing power over time, especially during periods of high inflation. He also said that even professionals fail at market timing.
“Almost all investors … cannot time the market effectively even when they think they can,” Dalio wrote. “For that reason, I believe that for most investors managing their own portfolios, investing should be done with little or no market timing.”
That does not mean cash has no role—it means idle cash should be working harder than a standard savings account allows.
Moomoo’s Cash Sweep program is one way to address that. New users can earn up to 8.1% APY on uninvested cash for a 60-day promotional period, combining a 3.35% base rate with a 4.75% booster coupon activated through the app, on balances up to $20,000.
Funds are placed at partner banks and are FDIC insured within standard limits. For investors building toward an all-weather allocation, having cash earn a meaningful yield while they decide where to deploy it is a better starting position than letting it sit.
Dalio said that All Weather is not a specific investment product but a financial engineering challenge. The goal is to create a passive mix of investments that delivers higher returns than cash with significantly less risk than traditional stocks or bonds.
To achieve this, Dalio pioneered the concept of “risk parity.” Instead of splitting assets by dollar amount like the classic 60/40 stock/bond split, risk parity balances the volatility of different assets.
By understanding how different asset classes respond to economic drivers — specifically growth and inflation — investors can balance their exposures:
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When inflation rises: Bonds typically suffer, but inflation-hedge assets like gold, commodities and inflation-indexed bonds perform well.
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When growth slows: Stocks may dip, but high-quality bonds often provide a safety net.
