Bridgewater Associates Ray Daliois is speaking just spoke at the Bloomberg Markets 50 Summit.
We took notes on his key ideas, which were very interesting.
He says the ultimate goal is something like 15 uncorrelated investment ideas to goot portfolio balancing.
He rejected the idea that everything is correlated these days, and so hedge fund investing is tough.
In fact, he claims the correlation doesn’t exist. What? Why? All there are are logical connections between asset classes. So right now it’s logical that stocks and bonds behave opposite. It’s not that they’re corelated, but rather they’re trading as logic would dictate.
On Europe: He says he’s pessimestic, and doubtful that it can be done orderly.
As for the US, being able to print money is super-handy.
Says Dalio: If you are a debtor, and you can’t print, you are crashing.
Why is Bridgewater doing well, when everyone else is doing so bad?
Dalio: I constantly know that I don’t know. The main reason that I write daily observations is that I want to know where I’m wrong. If I’m doing well, it’s not because I’m going to name the one or two things, then you’re playing russian roullette. The way to make money is to be the casino, not to be the gambler in the casino.
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