Dalio On Challenging Your Point Of View

To invest successfully, you have to sincerely consider the possibility that you might be wrong, and continually challenge your own assumptions and opinions, hedge fund guru Ray Dalio says in a recent column for Institutional Investor.

Dalio: Cash and Bonds “Terrible” Plays Right Now

Hedge fund guru Ray Dalio says cash and bonds are both “terrible” investments right now. Dalio tells CNBC that with interest rates kept artificially low by the Federal Reserve, investors have been reaching for return in other areas, driving asset prices up. He also says “there’s the beginning of a leveraging process” going on. Those factors are good for assets in the near term, Dalio says. “I think that assets will continue to appreciate, but… Read More

The Benefits of Self-Doubt

Warren Buffett and Ray Dalio are two of the most well-known, successful investors in the world. And The Wall Street Journal’s Jason Zweig says they have at least one key trait in common: They are open to criticism and self-doubt. “A deliberate, lifelong effort to find people to tell him why he might be wrong is one of the keys to Mr. Buffett’s success,” Zweig writes on WSJ’s MoneyBeat blog, discussing how Buffett took the… Read More

Sonders on “Rational Exuberance”

Retail investors have, at long last, been coming back to stocks in the first month or so of 2013, and Charles Schwab Chief Investment Strategist Liz Ann Sonders says it’s a rational move for them. In her latest market commentary, Sonders looks at how negative sentiment and mutual fund flows have gone over the past few years. She even cites one Franklin Templeton survey showing that the majority of investors weren’t even aware that the… Read More

Tilson, Heins, and Recency Bias

How did so many investors and analysts fail to recognize the looming economic and stock market crises in recent years? In their latest Forbes column, Whitney Tilson and John Heins say that “recency bias” is a big reason — and a major challenge facing all investors. “One of the more insidious investor biases is a natural tendency to assume that the future will look like the recent past,” write Tilson and Heins in explaining recency… Read More