Even More From Ray Dalio That's Definitely Worth Your Checking Out
It seems Ray Dalio has been a busy bee. He's "at an age" where he wants to create a legacy of some sort. That's perfectly natural for someone who's been successful and getting up in years. In Dalio's case, he's been extraordinarily successful and appears to feel some desire or obligation to benefit not only his own family, but mankind as a whole. It's a philanthropic urge that we should appreciate, even applaud.
Now, I'm not saying that we should hang on the man's every word. But it wouldn't hurt to take him at his word and check out the gems (see our last post) he's creating for us little people. After noting his publication about debt cycles, today we note his latest. It's got to do with Paradigm Shifts. And, as with the vast research he published on debt cycles, he offers his insights here FREE.
You should just go to his Linked-In page and check out the article posted. I would also download the whole piece, which includes and Appendix. I've gone through this once, but will likely revisit and put some beefed up brain power into a second, perhaps even a third reading. Heck, the guy's being quite generous, so why not accept his generosity? After all, he's arguably the most successful hedge fund manager ever. And it's not like he's some flash in the pan. He's been at the investing "game" (as he calls it) since the 1960s.
What you'll find is his description of what an investing paradigm is, his demonstration that they change over time, lasting an average of 10 years, a description of the current investment paradigm - which is coming to an end - as well as some hint at what he believes the next paradigm will look like. Given the fact that shifts in investment paradigms are a big deal, and that we're on the cusp of the next change, it's worth your time to check all this out. (Ya think?)
In the course of my first reading, I came across something important to share here. For what it's worth, I can vouch for what he's saying here, and it's based on experience - sometimes painful experience. Fortunately, I caught on before I was "ruined." Maybe it's that personal experience that causes me to be so appreciative of Dalio's efforts. It also motivates me to want to get as much as I can out of what he's sharing.
In any case, here's something you can "take to the bank":
"...any single approach to investing—e.g., investing in any asset class, investing via any investment style (such as value, growth, distressed), investing in anything—will experience a time when it performs so terribly that it can ruin you. That includes investing in “cash” (i.e., short-term debt) of the sovereign that can’t default, which most everyone thinks is riskless but is not because the cash returns provided to the owner are denominated in currencies that the central bank can “print” so they can be depreciated in value when enough money is printed to hold interest rates significantly below inflation rates. "
Now, I'm not saying that we should hang on the man's every word. But it wouldn't hurt to take him at his word and check out the gems (see our last post) he's creating for us little people. After noting his publication about debt cycles, today we note his latest. It's got to do with Paradigm Shifts. And, as with the vast research he published on debt cycles, he offers his insights here FREE.
You should just go to his Linked-In page and check out the article posted. I would also download the whole piece, which includes and Appendix. I've gone through this once, but will likely revisit and put some beefed up brain power into a second, perhaps even a third reading. Heck, the guy's being quite generous, so why not accept his generosity? After all, he's arguably the most successful hedge fund manager ever. And it's not like he's some flash in the pan. He's been at the investing "game" (as he calls it) since the 1960s.
What you'll find is his description of what an investing paradigm is, his demonstration that they change over time, lasting an average of 10 years, a description of the current investment paradigm - which is coming to an end - as well as some hint at what he believes the next paradigm will look like. Given the fact that shifts in investment paradigms are a big deal, and that we're on the cusp of the next change, it's worth your time to check all this out. (Ya think?)
In the course of my first reading, I came across something important to share here. For what it's worth, I can vouch for what he's saying here, and it's based on experience - sometimes painful experience. Fortunately, I caught on before I was "ruined." Maybe it's that personal experience that causes me to be so appreciative of Dalio's efforts. It also motivates me to want to get as much as I can out of what he's sharing.
In any case, here's something you can "take to the bank":
"...any single approach to investing—e.g., investing in any asset class, investing via any investment style (such as value, growth, distressed), investing in anything—will experience a time when it performs so terribly that it can ruin you. That includes investing in “cash” (i.e., short-term debt) of the sovereign that can’t default, which most everyone thinks is riskless but is not because the cash returns provided to the owner are denominated in currencies that the central bank can “print” so they can be depreciated in value when enough money is printed to hold interest rates significantly below inflation rates. "
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