Wednesday, January 28, 2009

Ray Dalio on the current state of affairs in the market


Bridgewater Associates founder Ray Dalio is a smart investor.
His actively managed hedge fund strategy, called Pure Alpha, reported an 8.7% net gain in 2008, a year when almost all asset classes declined in value.
Dalio's annual letter to investors is well worth reading. It is choke full of perspectives and insight. All of which could be very helpful in the current environment.
“If you optimize your investment strategy to work in a certain period without having a deep enough understanding of how it would work in all circumstances, including circumstances that did not occur within the period that’s your frame of reference, you will inevitably do very badly – and that is what happened to a lot of people in 2008,” he writes.
To read the Bridgewater Letter written by Ray in its entirety go here.

All American Investor: Ray Dalio on the current state of affairs in the market