Ray Dalio: U.S. Dollar Losing Reserve Currency Status

Ray Dalio: Be An Independent Thinker

 
"In order to make money in the market, you have to be an independent thinker."

Ray Dalio

Ray Dalio On The U.S. Dollar

"I think it's inevitable that the dollar's role as a world currency diminish from the dominant world currency to one of a few and it will happen over a gradual time.  We've been very lucky, because the dollar is the world's currency and considered the place that's safe so foreign countries will save there and we've been able to borrow at cheaper rates than we could have otherwise.  And so that is diminishing."

Ray Dalio

Ray Dalio: U.S. Stocks Are Cheap, But Buy Some Gold Too

“U.S. equities first are comparatively cheap but more importantly flows are beneficial to them.

Portfolios have too much concentration in developed countries’ stocks and bonds relative to other assets. The key thing is going to be diversification. Most investors have too much dollar denominated assets or too much of their portfolio in developed countries. I don’t think that they have typically much gold in their portfolio. Gold is a form of money. The main theme now for investors is that if they diversify their assets into other assets, I think other assets will perform better. It will also lower the risk of their portfolio.”

Ray Dalio

Ray Dalio: Recognize Your Mistakes

"I believe that truth is healthy and that most people can get what they want if they understand what is true and learn how to successfully deal with it. But I recognize that some people have problems applying this to their and others’ mistakes and weaknesses. That is because there commonly exists a stupid paradigm that “successful” people don’t make mistakes and don’t have weaknesses, whereas the truth is that everyone makes mistakes and has weaknesses. I believe that most important difference between “successful” people and “unsuccessful” people is that the successful people recognize their mistakes so that they learn from them and they recognize their weaknesses so they develop strategies to get around them."

Ray Dalio

Ray Dalio: Be Wary Of Data Mining

"I learned to be especially wary about data mining – to not go looking for what would have worked in the past, which will lead me to have an incorrect perspective. Having a sound fundamental basis for making a trade, and an excellent perspective concerning what to expect from that trade, are the building blocks that have to be combined into a strategy."

Ray Dalio