Ray Dalio is Trying to Steal My Thunder
Ray Dalio must be reading my blog. One day after I wrote about a “paradigm shift” happening in the markets, Ray decides to come over the top and trump my post.
Truth be told, Mr. Dalio is one of the main financial figures that I follow and his words should be heeded. He has been enormously successful in creating one of the biggest hedge funds in the world, Bridgewater Associates, and this past year he’s been on a media blitz in sharing some of his Principles on success.
In his post yesterday, Paradigm Shifts, he recounts the history of the markets, decade by decade, and looks at past paradigms and paradigm shifts and then focuses on the paradigm that we are currently experiencing and how it might change in the future.
One of his main points is to be aware of what, “history has taught us (and) that there are always paradigms and paradigm shifts and that understanding and positioning oneself for them is essential for one’s well-being as an investor and beyond.”
He continues, “As a result, navigating markets well requires one to be more accurate about what is going to happen than the consensus view that is built into the price. That’s the game. That’s why understanding these paradigms and paradigm shifts is so important.”
Regarding my post yesterday, my paradigm shift is a derivative of Ray’s paradigm shift. The change I’m expecting, will be a result of what he is predicting. Whereas he’s looking at the markets we have known, and know now, I’m talking about what the markets will evolve into.
This is valuable piece that I’m going to keep in my back pocket because it will help guide my thinking. As Ray explains, by analyzing, “the evolving story that got us where we are…will help put where we are in context,” and maybe where we are going.