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Head Of World’s Largest Hedge Fund Says ‘If You’re Holding Cash, You’re Going To Feel Pretty Stupid’
Well, there are always lots of peddlers of "whatever" to get-rich-now schemes; and unless Ray Dalio has been and is one of the greatest flim-flam folks of all time, I do pay attention to his writings and words. He surely doesn't need more money (estimated wealth at $16 billion). I do believe he is sincere with his thoughts about cash on the sidelines for the near future investments, as well as other social, political and investment thinking he passes along. Mr. Dalio also notes a possible negative equity market effect "if" interest rates jump to +1% from current levels. Below is a link from Mr. Dalio and 4 books he feels are worth reading. I am familiar with 2, Joseph Campbell and the Durants, and a 3rd subject matter(TM), as I have been a TM'er since 1974. I highly recommend anything by Joseph Campbell and the Durants, and to add that some of Joseph Campbell's works were produced to video series.
I would rather be stupid than poorer. No one ( other than my fellow MFOers) else needs to know i am stupid but if I can't retire or put my kids thru college, I will be worse than stupid.
Sure, go ahead and jump in with both feet. I am sure Ray will tell all of us ( and just us nobody else) when to get out just before the next 40% drop
It all depends on how far the need is. I would jump in both feet (not dca) if my need was distant enough. Also never forget that recovery times are not very long periods, so figure how long you can suffer and wait.
What piqued my interest was a pretty good Bloomberg interview today with T. Rowe’s Sebastian Page, head of the committee, in which he riterates and expands upon those views in greater detail. (Might be able to link interview later.)
What peaked my interest was a pretty good Bloomberg interview today with T. Rowe’s Sebastian Page, head of the committee, in which he riterates and expands upon those views in greater detail. (Might be able to link interview later.)
"Top Stockpicker T. Rowe Price Has Boosted Bonds, Cash Allocations"
Sometimes I wonder who writes these things... "Top Stockpicker"... Boosting Bonds and Cash Allocations? Those should never appear in the same headline.
To be honest, I perceive you as 100% “bullish” all the time. (And you did put up the ”hedgeie”’s insulting remarks directed towards those holding cash). So it didn’t occur to me you might have later on posted something more out of the bearish camp. My oversight!
Also, there’s sometimes an incorrect perception that each of us agrees with whatever opinion piece we post. Of course, that’s not the case. So, thank you for pointing out that you earlier posted the item. Your use of the primary source (Reuters) is a better method than using the secondary source (NYT) I linked.
The Sebastian Page interview on Bloomberg today is better IMHO than the short blurb with Shriver which Reuters published. I don’t think they’ll make that interview available for linking until tomorrow. It would be a nice “feather in your cap” if you can locate and post it after it’s available.
Regards
PS - Near term I sometimes pull out my (remaining) hair while trying to understand Price’s allocation decisions. But longer term, I’ve found them almost always correct.
Comments
I'll go out on a limb and call it: We're at peak hubris.
Ray probably has a bunch of stuff he wants to unload while the getting's good, and needs more sheep to sell to.
Yes, I'm a contrarian and cynic when it comes to prognostications from such folks.
Regards,
Ted
Well, there are always lots of peddlers of "whatever" to get-rich-now schemes; and unless Ray Dalio has been and is one of the greatest flim-flam folks of all time, I do pay attention to his writings and words. He surely doesn't need more money (estimated wealth at $16 billion). I do believe he is sincere with his thoughts about cash on the sidelines for the near future investments, as well as other social, political and investment thinking he passes along. Mr. Dalio also notes a possible negative equity market effect "if" interest rates jump to +1% from current levels.
Below is a link from Mr. Dalio and 4 books he feels are worth reading. I am familiar with 2, Joseph Campbell and the Durants, and a 3rd subject matter(TM), as I have been a TM'er since 1974.
I highly recommend anything by Joseph Campbell and the Durants, and to add that some of Joseph Campbell's works were produced to video series.
https://www.cnbc.com/2018/01/24/4-books-that-billionaire-ray-dalio-thinks-everyone-should-read.html
Take care,
Catch
I am about 85% invested, nearly all of which is in reinvesting equities -- which is fine by me.
My remaining cash, while annoying to hold, is helpful in being opportunistic when things turn south ... and I'm ok with that (mild) annoyance.
Sure, go ahead and jump in with both feet. I am sure Ray will tell all of us ( and just us nobody else) when to get out just before the next 40% drop
T. Rowe Price begs to disagree. Charles Shriver, co-head of Price’s Asset Allocation Committee, explains their new affinity for cash and bonds in this (Reuters based) NYT article from 2 days ago. https://www.nytimes.com/reuters/2018/02/28/business/28reuters-lipper-awards-t-rowe-price-grp.html
What piqued my interest was a pretty good Bloomberg interview today with T. Rowe’s Sebastian Page, head of the committee, in which he riterates and expands upon those views in greater detail. (Might be able to link interview later.)
Sometimes I wonder who writes these things... "Top Stockpicker"... Boosting Bonds and Cash Allocations? Those should never appear in the same headline.
Regards,
Ted
https://www.mutualfundobserver.com/discuss/discussion/39159/top-stockpicker-t-rowe-price-has-boosted-bonds-cash-allocations#latest
To be honest, I perceive you as 100% “bullish” all the time. (And you did put up the ”hedgeie”’s insulting remarks directed towards those holding cash). So it didn’t occur to me you might have later on posted something more out of the bearish camp. My oversight!
Also, there’s sometimes an incorrect perception that each of us agrees with whatever opinion piece we post. Of course, that’s not the case. So, thank you for pointing out that you earlier posted the item. Your use of the primary source (Reuters) is a better method than using the secondary source (NYT) I linked.
The Sebastian Page interview on Bloomberg today is better IMHO than the short blurb with Shriver which Reuters published. I don’t think they’ll make that interview available for linking until tomorrow. It would be a nice “feather in your cap” if you can locate and post it after it’s available.
Regards
PS - Near term I sometimes pull out my (remaining) hair while trying to understand Price’s allocation decisions. But longer term, I’ve found them almost always correct.