Strategy · Long-Term

ALL-WEATHER EQUITY SLEEVE

BullishDefined riskIntermediate

Overview

Build an equity allocation that performs across regimes: 25% US large cap, 25% US small cap value, 25% international developed, 25% emerging markets. Geographic and factor diversification.

Setup

1.Allocate 25% each to VTI, AVUV, VEA, VWO (or equivalents).
2.Rebalance annually back to target weights.
3.Add to whichever sleeve underperformed by >5%.
4.Avoid concentration drift — discipline matters.
5.Hold a minimum 10 years to capture the diversification benefit.
6.Pair with a fixed-income sleeve for full all-weather portfolio.

Max profit

Long-term equity returns with smoother regional performance.

Max loss

Equity-like downside in correlated bear markets.

Breakeven

Roughly matches global equity returns over the cycle.

When to use

For long-horizon investors wanting global exposure without tactical decisions.

When to avoid

If you have a strong tactical view favoring one region. In short time horizons.