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A. Stotz All Weather Strategies – December 2025

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The All Weather Strategy is available in Thailand through FINNOMENA. If you’re interested in our allocation strategy, you can also join the Become a Better Investor Community. Please note that this post is not investment advice and should not be seen as recommendations. Also, remember that backtested or past performance is not a reliable indicator of future performance.

What happened in world markets in December 2025

Performance of the World stock markets

  • NYSE was up a bit, while Tech-heavy NASDAQ lost some
  • Japan had a good month
  • China A was great, while Hong Kong fell slightly
  • Europe had a fairly good month
  • 2025 was incredible

Find the updated Performance of the World stock markets here.

Mid December 2025, the Fed cut rates by 0.25%

Bank of Japan raised rates by 0.25% at end of 2025

Fund managers have reduced their cash holdings to record lows

Investors have levered up

AI-related stocks are 23% of the global market cap

Central banks are loading up on gold

All precious metals went on a run

World Equity gained 0.5% in December

  • The strategy has a core target allocation of 20%
  • US didn’t get much of a Santa rally, but Emerging markets saw strong gains on a weaker US$
  • The fund we use in the strategy did well, but as it’s unhedged, it lost some on the weaker US$

Global Bonds lost 0.4% in December

  • The strategy has a core allocation to Global Bonds; the current target allocation is at 50%
  • Concerns about sticky inflation leading to higher rates for longer pushed down Global Bonds

Commodities fell slightly in December

  • We had no target allocation to Commodities

WTI oil closed December at US$57/bbl versus US$59/bbl in November

  • Oil became cheaper as supply remained ample

Industrial metals and livestock gained the most

Gold gained 4.1% in December 2025

  • We had a 10% target allocation to Gold
  • Gold closed the month at US$4,318/oz t
  • Continued uncertainty drove the Gold price further

All currencies weakened >30% against Gold in 2025

  • Typically, a stronger US$ means a lower Gold price in US$ and vice versa

Performance review: All Weather Inflation Guard

All Weather Inflation Guard gained 0.4%

Since inception, the strategy was up 18.4% and 8.5% above a 40/60 portfolio

  • The strategy has also experienced less volatility

In December 2025, the strategy was up 0.4%, which was 0.2% above the 40/60 portfolio

  • Our tilts to Gold and Info. Tech. did great
  • TIPS outperformed Global Bonds
  • Global Bonds did poorly, and was the only fund that lost money in December

The strategy added 0.4% value compared to a 40/60 portfolio in 2025

  • The strategy beat a 40/60 portfolio by 1.0% in 2024

Performance review: All Weather Strategy

All Weather Strategy gained 1.9%

Since inception, the strategy was up 74.9% and 31.3% above a 60/40 portfolio

In December 2025, the strategy was up 1.9%, which was 1.5% above the 60/40 portfolio

  • Our 25% allocations to Gold and Emerging markets ex China outperformed significantly
  • China did well, too
  • Our 15% US equity tilt dragged on performance

The strategy has added 6.7% value compared to a 60/40 portfolio in 2025

  • The strategy beat a 60/40 portfolio by 7.0% in 2024

Performance review: All Weather Alpha Focus

All Weather Alpha Focus gained 1.2%

Since inception, the strategy was up 23.1% and 15.2% above a 60/40 portfolio

And 1.0% below World Equity, but with a lot less volatility

In December 2025, the strategy was up 1.2%, which was 0.8% above the 60/40 portfolio

  • Our 20% tilt to Precious Metals Miners and 4% in Gold drove the outperformance
  • Out 22% tilts to Vietnam and Latin America dragged

The strategy has added 9.1% value compared to a 60/40 portfolio in 2025YTD

  • The strategy beat a 60/40 portfolio by 3.7% in 2024

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

Posted in All Weather Strategy