Ray Dalio's Risk-Parity Strategy Falters, Prompting Massive Investor Pullback Ray Dalio’s renowned risk-parity investment strategy, which gained prominence during the Great Financial Crisis, is experiencing a significant downturn, leading to substantial withdrawals by institutional investors. Over the past five years, risk-parity funds managed by Bridgewater Associates and others have underperformed, prompting public pensions in New Mexico, Oregon, and Ohio to retract substantial investments, reducing the fund sizes by an estimated $70 billion from their peak. Despite calls from these firms for more time to recover, given predictions of a divergent market landscape in the coming decade, investors’ patience has worn thin. The strategy’s struggle to deliver during the volatile post-pandemic market phases has notably shaken confidence in an approach that emphasizes diversification and often leverages to balance returns against risks. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts The Best Time to Buy Gold & Silver in 2024 READ MORE Gold at Two-Week Low, Copper Below $9,000/t READ MORE Jamie Dimon's Inflation Alarm: High Rates and Economic Challenges Ahead READ MORE Silver Market Teeters on Edge as Volatility Drops Prices READ MORE Defying Milei: Argentine Province Prints Its Own Money to Survive READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment