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 Potential Layoffs Ahead as Companies Brace for Interest Rate Hikes READ MORE China's Central Bank Creates New Liquidity Tools to "Help" Monetary Policy READ MORE Jackson Hole Symposium: Powell's Speech to Signal Fed's Rate Cut Strategy READ MORE Defying Conventional Thinking: Gold Gains Against Rising Rates and a Robust Dollar READ MORE Rate Cuts Are a Good Environment for Gold Investment, Says World Gold Council’s Joe Cavatoni READ MORE Add a Comment Cancel replyYour email address will not be published.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