View Single Post
Old 27.03.2020, 11:57
wantone wantone is offline
Senior Member
Join Date: Jul 2016
Location: GR
Posts: 439
Groaned at 21 Times in 17 Posts
Thanked 144 Times in 122 Posts
wantone has no particular reputation at present
Re: Buying ETF's in Euro to create Ray Dalios Allweather fund allocation

View Post
#1 The allocation has much stronger performance than S&P500 over the longterm due to compounding effect. The S&P's volatility is poison for the compounding effect (-50% is fatal). In this blogpost i have made an Excel that compares the performance of S&P500 and RayDalioAllweather with 10k over 90 years. S&P500 end with 2.8mill and Ray with 4.6mill. + Ray has very little volatility, so you could pull out at any time of the 90years.
Direct link to excel:
Link to blog:

#2 I agree with the USD currency. EUR or CHF won't be safer or better than USD. Only a small currency risk issue, but you just need to make sure you don't convert you money in a time where the currency conversion is bad. I go longterm so i always plan to have +-5 years to wait for better markets.

Let me know if i'm delusional or if i'm on the right track? I'm no pro investor.
Ok I admit I didn't spend much time looking at the details posted (didn't open the links either) but Ray Dalio is just an investor. It is risky to follow what other people do. Especially because in reality no one will ever tell you what he does.

Where you get the compounding effect?

Like I said you can easily create a stock and commodities portfolio using the weights from Ray Dalio's strategy and spent less fees and have more control on your investments.

It is not a bad idea to copy him but I know for a fact no serious investor will ever reveal his positions to others.

If my income was in CHF I would change the money to a mix of USD and EUR keeping CHF only for expenses. USD for investments and EUR for buying property and holidaying in the Eurozone.
Reply With Quote