Talk Your Book: Investing in the All Weather Strategy

In this episode of Animal Spirits, Michael Batnick and Ben Carlson discuss the SPDR Bridgewater All Weather ETF (ticker: ALLW) with Matt Bartolini from State Street Investment Management and Chris Ward from Bridgewater Associates. Chris Ward explains the All Weather strategy, created by Ray Dalio, which aims to build a portfolio that performs well in any economic environment by balancing risk across assets that perform differently during various economic conditions, specifically focusing on growth and inflation. Matt Bartolini discusses how State Street implemented the Bridgewater approach into an ETF framework, considering the taxable investor. The conversation covers the strategy's evolution, its role as a complement to or alternative to the 60/40 portfolio, the use of leverage, and its performance in different market environments. They also address the active components of the strategy and the benefits of accessing it through an ETF.