Ray Dalio, a leading figure in the financial world and co-founder of Bridgewater, emphasizes the importance of understanding investing principles beyond historical trends. He warns that letting recency bias guide investment decisions can lead to costly mistakes. Additionally, he explains market dynamics, such as the impact of growth rates and inflation on stock and bond prices, suggesting that investors should not react hastily to short-term market fluctuations. Dalio’s insights provide valuable guidance for both novice and experienced investors in navigating the complex financial landscape.
"The biggest mistake investors make is to believe that what happened in the recent past is likely to persist. They assume that something that was a good investment in the recent past is still a good investment."
"When growth is slower than expected, stocks go down. When inflation is higher than expected, bonds go down. When inflation is lower-than-expected, bonds go up."
Collection
[
|
...
]