Doug Ramsey’s “All Asset No Authority” (AANA) lazy portfolio is a unique and straightforward approach to diversified investing. Here’s a brief look at Ramsey’s background, the origin of the portfolio’s name, the rationale behind its structure, and an outline of its asset allocations.
1. Doug Ramsey’s Background
Doug Ramsey is the Chief Investment Officer at Leuthold Group, known for his rigorous research and data-driven investment insights. Doug Ramsey regularly revisits his “All Asset No Authority” (AANA) portfolio as part of Leuthold Group’s annual asset allocation review.
2. Why “No Authority”?
The portfolio’s name, “All Asset No Authority,” humorously reflects its hands-off, no-expert-required approach. The term “No Authority” suggests that the portfolio is designed to be simple and accessible, requiring no specialized knowledge to manage. Its equal allocation across the seven assets reinforces this by ensuring that no single asset class is given more emphasis than others, maintaining a balanced and straightforward structure. Ramsey designed it with simplicity in mind, making it accessible for individual investors who prefer an evenly distributed asset allocation strategy without actively managed oversight.
3. Rationale for 7 Equal-Weight Assets
The portfolio includes seven asset classes, each weighted equally to cover a broad range of economic scenarios. By using this balanced approach, the portfolio aims to benefit from diverse returns across asset types without relying heavily on any single one. This diversification helps reduce volatility and potentially smooth returns over time.
4. Asset Allocations
The portfolio comprises the following seven assets, each allocated with equal weight (about 14.3%) in the portfolio:
| Asset Class | Allocation (Approx. 14.3% each) |
|---|---|
| U.S. Large-Cap Stocks | 14.3% |
| U.S. Small-Cap Stocks | 14.3% |
| U.S. Real Estate (REITs) | 14.3% |
| International Developed Stocks | 14.3% |
| Emerging Markets Stocks | 14.3% |
| U.S. Long-Term Treasury Bonds | 14.3% |
| U.S. TIPS (Treasury Inflation-Protected Securities) | 14.3% |
This equal-weighted approach ensures a well-rounded exposure to growth, stability, economic weakness, deflation, and inflation-resistant assets, making it a reliable, low-maintenance option for long-term investors.
Buy and Hold (Annually Rebalance)
USLargeCap VTSAX 14.3%
USSmallCap NAESX 14.3%
IntlDevlopedMarket VGTSX 14.3%
USREITs VGSIX 14.3%
LongTermTreasury VUSTX 14.3%
Commodities DBC 14.2%
Gold GLD 14.3%
Simulated from 02/03/2006