Mistakes from the Top Down

A couple of the investment world’s heavy-hitters have something to say about making mistakes. A fact of life which, according to a brief interview in Chief Investment Officer, is a “quality that unites the best-of-the-institutional-investing-best.” Ray Dalio, Co-CIO and Founder of Bridgewater Associates says “I’m a professional mistake-maker—one third of my trades are probably wrong.” Dalio say that humility comes from mess-ups and his philosophy is to find “the smartest people I know who disagree… Read More

Billionaire Ray Dalio Calls Himself a “Professional Mistake Maker”

It seems that being a billionaire doesn’t necessarily overshadow one’s humility. Ray Dalio runs Bridgewater Associates, the world’s biggest hedge fund, which he started in a two-bedroom apartment 40 years ago. According to a Forbe’s estimate, Dalio is worth around $15.6 billion, and his fund employs 1,500 people and manages about $150 billion in assets. In an interview with psychology professor Robert Kegan of Harvard University, however, the investment behemoth discussed how making mistakes and… Read More

Tepper, Dalio, Gundlach on Opportunities and Risks in Today’s Market

Investment heavy weights, including David Tepper of Appaloosa Management and Ray Dalio of Bridgewater Associates recently shared their market insights with Forbes. Tepper’s view on the US market is that it trades at around fair value, but that it can “grind higher” barring any major outside event (i.e. a Brexit or something else). The most important thing facing investors right now, says Tepper, is the Federal Reserve. He believes the Fed will be very patient… Read More

Bridgewater’s Dalio Says the “Risk is Asymmetrical on the Downside”

Ray Dalio of Bridgewater Associates explained the long-term debt cycle affecting the market. “The problems at the end of the long-term debt cycle,” he said, “is that it is very hard for the Federal Reserve or central banks to ease monetary policy.” He observed that the effect of quantitative easing is, ultimately, to lower the spread (or return) because it drives asset prices up and lowers the yield so, “for example, you have about a… Read More

Bridgewater’s Dalio: 2015 May Be Like 1937 for the Market

  A recent Wall Street Journal piece notes that hedge-fund manager Ray Dalio and others have discussed potentially significant parallels between 1937 and 2015.  Dalio, in a March letter earlier this year, identified the following comparable timeline: Debt limits reached at “the bubble top” in 1929 and in 2007; Interest rates fall to zero in 1931 and 2008; Money printing begins a “beautiful deleveraging” in 1933 and 2009; Stocks and “risky assets” rally in 1933-36… Read More

Bridgewater's Dalio Worries about Fed's Effectiveness in Next Downturn

Ray Dalio, the founder of one of the world’s largest hedge funds, believes that monetary policy going forward will be less effective than in the past. He says that the Federal Reserve is overly focused on the short-term debt cycle and he predicts lower assets class returns going forward — somewhere in the 3-4% range over the next 10 years. “What scares me, or what worries me, is what the next downturn in the economy… Read More

Bridgewater’s Dalio Worries about Fed’s Effectiveness in Next Downturn

Ray Dalio, the founder of one of the world’s largest hedge funds, believes that monetary policy going forward will be less effective than in the past. He says that the Federal Reserve is overly focused on the short-term debt cycle and he predicts lower assets class returns going forward — somewhere in the 3-4% range over the next 10 years. “What scares me, or what worries me, is what the next downturn in the economy… Read More

Dalio Sees Significant QE Before Significant Rate Hike

Hedge fund guru Ray Dalio says he expects the Federal Reserve to make a significant quantitative easing move before it makes a significant interest rate hike. “To be clear, we are not saying that we don’t believe that there will be a tightening before there is an easing,” Dalio writes in a recent post on his LinkedIn page (h/t MarketWatch). “We are saying that we believe that there will be a big easing before a… Read More