Somewhere along the lines, Ray Dalio's all weather became known to be a portfolio with the following weights:
- 30% Equities
- 40% Long Term Treasuries
- 15% Intermediate Term Treasuries
- 7.5% Gold
- 7.5% Commodities
When I run this with portfolio visualizer, and drill down to the metrics, I get a risk contribution that's not at all equal across different asset classes.
- 1) Why is that?
- 2) How were the above weights derived?
- 3) How are these weights static when risk parity talks about using leverage to increase exposure in low volatility assets compared to the higher volatility ones?