TIP - The Anti-Fragile Portfolio
The All-Weather Portfolio is a novel concept. Investors should construct a portfolio in such a way that maximizes risk-adjusted returns regardless of the macroeconomic environment. A typical all-weather quad chart is shown below. We currently have low inflation and low growth. What does the all-weather portfolio say? Gold and long duration treasuries. Gold makes sense as a store of value in the high volatility typically associated with a downturn in the business cycle.
(Source: theuglybudget.com)
Now, why are long duration treasuries a smart investment in a low growth, low inflation environment? It has to