Comment by abeaulne

6 years ago

How The Economic Machine Works by Ray Dalio

https://www.youtube.com/watch?v=PHe0bXAIuk0

I don't agree entirely but good signal-to-noise ratio on this content

"Ray Dalio says 'cash is trash' and advises investors hold a global, diversified portfolio" - Jan 21 2020

Had you have listened to him, you would have just been taken out back, shot, and put in one of wuhans finest crematoriums… better off reading "Statistical Consequences of Fat Tails"[0]

[0] https://arxiv.org/abs/2001.10488

  • His advise is still sound if you are an investor and not speculator.

    The part of your investment that is in stock should be determined your investment horizon. If you don't need to sell your stock in next 15 years, don't hold cash.

    • Yeah, would have played out very well for those top ticking n225 in 1989, esp with every global CB's trying to follow in the footsteps of the BOJ, while everyone is crowding into "diversification" and searching for yield…

      I consider investors to be the same as speculators, just speculators who think their beliefs will remain valid over long time frames… cause that's the gamble.

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