Performance & Risk Metrics (2016-2026)
| Metric | Ivy Portfolio | All Weather Portfolio |
|---|---|---|
| CAGR (10-Year Annualized Return) | 8.8% | 7.2% |
| Max Drawdown | -14.2% | -11.9% |
| Sharpe Ratio (Risk-Adjusted Return) | 0.64 | 0.60 |
| Volatility (Annualized StdDev) | 8.9% | 7.8% |
| Best Calendar Year | +19.6% | +16.8% |
| Worst Calendar Year | -8.5% | -6.2% |
| Strategy Type | Tactical Asset Allocation (Trend following) | Passive Portfolio (Strategic Buy & Hold) |
| Rebalancing Frequency | Monthly (on momentum signals) | Annually (fixed target weights) |
Ivy Portfolio Philosophy
Meb Faber's Ivy Portfolio applies a 10-month moving average trend filter to five diverse asset classes. If an asset falls below its trend, it is moved to cash, protecting the portfolio from severe bear markets.
All Weather Philosophy
The All Weather portfolio remains fully invested at all times, relying on the structural negative correlation between stocks and long-term bonds to weather any economic storm without market timing.
Which Strategy is Right For You?
Choose GEM if: You are comfortable with monthly monitoring, invest via tax-advantaged accounts (like IRAs or 401ks in the US, or tax-wrapped accounts in Europe), and want to maximize long-term growth while protecting capital from major multi-year bear markets.
Choose 60/40 if: You prefer a hands-off, "set and forget" approach, have a taxable investment account where frequent turnover triggers capital gains tax, and can emotionally tolerate drawdowns of 20-30% without panic-selling.