Consumer trust index fell with 7 Points this month, marking the largest decline since August 2021. In the Laester Terms? Americans are concerned about the economy.

You too may worry – but you don't have to worry about yours Micro-economic. Just get your investment portfolio brakes. Here are three recipes of wealth allocation, which I detail in my book School of moneythat are created to keep your investments sustainable regardless of the largest economic environment.

1. Warren Buffett's wallet

They don't call it Oracle of omaha for nothing. His investment philosophy is smart but simple. This wallet has only two different assets!

Buffett is said to describe his division of the target portfolio in the guidelines for his wife and their confidence when he dies: “Put 10 percent in short -term government bonds and 90 percent in a low -cost S&P index.

That sounds a little of corn, but it's true – the buffett really believes in America. He is convinced that long length the American economy will grow and flourish. In investing in a S&P 500 index fund, he is betting his family will benefit from growth, dividends and stock purchases of the top 500 companies in the US, investing in treasures, he is betting on the US government. This method has been historically successful, as S&P 500 has given an average annual return of about 10% for a long term, despite bad weather. Buffett's allocation is created for long -term investors who can remove market instability and are looking for a “buy and retention” strategy.

2. Ray Dalio's wallet

Ah, behold, “the whole weather portfolio”. This model was first introduced by Ray Dalio, the manager of the defensive fund after the Bridgewater Associates, the largest fund in the world. With billions under management he is widely considered one of the most successful investors of our time. When Ray talks, investors hear. He keeps the recipe for his secret sauce, and is not easily copied to a personal level. But here is an approximate formula that Dalio says the individual investor can easily use to reflect the output of the whole weather: 7.5% goods, 40% long -term bonds, 7.5% gold, 15% medium -term bonds, 30% shares.

This mix is ​​about covering all your bases to take advantage of any economic conditions to come on your way, whether it is a bull market, a bear market, inflation or deflation; This wallet actually has “wet” all those economic seasons over time. When historically tested, this portfolio won 85 percent of the time. He would also have lost “only” 20 percent during the big depression, while S&P 500 lost 65 percent. In some of the other points of the big market (1973 and 2002), Dalio's construction actually made money as the market suffered.

3. Last portfolio

Schools with the big name like Yale and Harvard manage massive funds or “wealth” and they do not hire fraud to do it. But there is no fixed percentage for this. This is about the mentality, more than a certain formula. It is about thinking beyond the traditional mix of stock and bonds with more alternative assets such as private capital, immovable property and protective funds. The goal is to achieve long -term growth as you reduce the risk of unstable stock market.

Whiz Financial David Swensen of Yale's epic wealth gave an overview of the mix they use to constantly exceed other investment strategies. When Swensen first took over the fund was mainly American capital, bonds and cash. Under its direction, the Endowment Yale has grown in the second largest in the country worth over $ 40 billion. In the highest percentage in the smallest percentage of the portfolio consists of: Absolute return (short -term investments as options that focus on profit generation), venture capital, promoted purchases, foreign capital, real estate, cash and fixed income such as bonds, natural resources and shares.

The donation model has been historically successful for several reasons, but respectively being as diverse as it is protected from great losses. Even if you get an F in a class, as long as you get one or the rest – after four years your GPA will recover. So does this portfolio. By investing in low -correlation assets with each other, the portfolio can weather different economic conditions better than a traditional stock/bond portfolio. For example, during periods when the stock market is declining, real estate funds or protection can still do well, supporting the portfolio against large oscillations.

Taken and adapted from School of Money: 12 Simple Lessons to Own Financial Markets and Investments by Nicole Lapin. Copyright © 2025 Nicole Lapin. Used with Harpercollins leadership permission, a trace of harpercollins Focus, LLC.