Building a Recession-Resistant Portfolio

A recession-resistant portfolio does not try to predict recessions — it is designed to perform acceptably well whether a recession arrives or not. This is a different and more achievable objective than market timing.

Why This Matters

Recession resistance is not the same as recession-proof — no portfolio eliminates recession losses entirely without also eliminating growth market gains. It is a portfolio construction approach that limits recession drawdown while preserving a meaningful portion of upside in growth environments. Dalio's All-Weather framework is the most widely studied approach to this problem, and its principles extend to portfolio construction at any scale.