Ray Dalio On Why Economies and Markets Fall Into Recessions | Exploring Markets

Ray Dalio On Why Economies and Markets Fall Into Recessions

Ray Dalio appeared on Bloomberg to give a special talk about why economies and stock markets stagnate and fall into recessions. The talk, which you can find below, is a rare look into how Dalio sees financial markets.

He also shares his thoughts on what everyone misunderstands about financial markets and gives two simple tips for anyone wanting to be an investor:
  1. Dalio says, "I would not want to go against myself in the financial markets." He says new investors should develop a proper asset allocation strategy. Do not buy only stocks or only bonds. You should be doing countless hours of research as well. "Don't compete against pros like me. You're probably going to lose." He's essentially saying that without a proper plan and risk management strategy, he and other funds like his will take your money.
  2. Be prudent and diversification will help. That even means gold. Allocate maybe 5% or 10% of your total portfolio to gold. Why? If anything the precious metal is a hedge against Central Banks making mistakes and hurting the currency your country operates with.
Take about 30 minutes of your day, sit back, and watch this entire talk: