In Ray Dalio’s most recent interview, he talked about how he believes future stock market returns will be in the range of 3%-4%. After factoring Ray Dalio’s views on inflation, this means that in real terms, investors will likely receive 0% real returns on their investment portfolio. In this recent interview, Ray Dalio shares his thoughts on the stock market correction, a potential market crash, inflation, and future returns investors should expect.
After watching this video, you will have a better understanding of the following topics: Ray Dalio’s thoughts on inflation, US debt, stock market correction, the economic machine, stock market bubble, and Ray Dalio’s investment portfolio.
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30 Comments
Hey guys! Just wanted to say I appreciate all of your support. Make sure to like this video and subscribe to the channel because it helps out a ton 😊
as we watch tech titans fall in valuation, we must consider there is a huge opportunity for wealth building ahead by investing in amazing businesses.
You had me until the artwork part
I dunno, 1 point up in interest rates resulted in 70% losses for a lot of stocks, seems unjustified.
Must be time for Ray to write another book right.
At 11:12 you cite Dalio (out of context) as saying "Cash is trash".
While he did say that (in a certain context), he was largely wrong… because a good investor should ALWAYS have a large reserve of cash (and/or gold) in order to be ready to profit from any opportunities that may arise.
Just like a country should ALWAYS have a strong standing military ready to fight, should any contingency arise, as Russia's unprovoked invasion of Ukraine has clearly shown.
Besides, the stock market (like the broader economy) works in cycles. Bull markets (i.e. phases favorables to stocks) are followed by bear markets, i.e. phases detrimental to stocks.
If you jump into, or remain invested in, the stock market AFTER the bull market run ends and the descent begins, your losses are certain to be horrific.
I repeat : if you invest at the high (or towards the end) of a bull market, you are virtually guaranteed to lose money.
If you own any stocks (except a few that seem to be very crash-resistant like Visa and Mastercard), SELL THEM while there's still someone dumb enough to buy them! You don't want to be caught holding the bag when the music stops.
Also, and here's Dalio and I are actually in agreement, is that EVERY individual should have AT LEAST 6 months worth of living expenses saved as a financial security cushion. But, curiously, you left that out.
Great video. Although, the part about it taking 13years to break even after 2000 would not have been true for the vast majority of investors. If someone was unlucky enough to lump-sum invest at the very peak of the market, not reinvest dividends, and never added another dime, it would have taken a long time to break even. But, most investors' dollar cost average as they earn money which would lower their cost basis on the runup and captures stocks on sale on the way down (further lowering cost basis). By the time the market reached its previous peak 13 years later, these investors would actually be far wealthier than if the crashes never happened not "breaking even".
I was going to say great video but then you had to add investment advice. If you can find a way to remain neutral I think your channel would grow much more rapidly. You have some good content but anytime you start advising people on how to invest you're entering the world of speculation – unless that is you have a magic crystal ball and can see into the future. I really enjoyed the valuation example with discounted cash flows but then you had to speculate. Ray Dalio is somewhat of a hypocrite as he's a multi billionaire who runs a hedge fund so while I respect his experience I take what he says with a grain of salt. Same goes for other wealthy financial gurus.
You say “cash is trash” then why does Warren Buffet hold $140bn..???
The more I watch this videos I understand Nothing!
End of the day you make your money by creating this videos and we as audiences get confused more..
Or is it just me feeling that way?
Investing in the S&P500 is essentially a well diversified investment. If you treat an investment into an S&P500 ETF as a savings account, meaning if you invest regularly/monthly through the ups and downs over a long period of time you will realize an average return. And an average return is brilliant for just sitting on your ass.
Gay bear needs to stop losing people money.
Inflation is double this today
The Answer : dividend stocks investing
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Videos like this are classic and comprehensive for one’s understanding…I do appreciate your works to the community!
It’s being quite a year and half now I’ve been trading and investing in the market, making gains and a loss at same time while learning under Mr. Ray Perkins mentorship platform. He’s the best I’ve worked with.
Thanks to him I earn on a weekly basis having him manage my account and portfolio!
Less valley girl narration would be great. Every sentence sounding like a question is super annoying?
Long term bonds are not a safe haven anymore due to their stuck pricing. Stick to tips or vxx as a hedge instead.
he's referencing the physical earnings not the stocks price. Growth isn't going to keep up with demanded pricing, nominal yields are at a low of 4% annually, close to inflation. That doesn't mean stocks won't go even higher or lower, it's just a measurement of physical earnings.
Its been hapening 40 years…
Thank you for your informative videos, i actually have one question that i would appreciate if you can reply to, let's says that i am taking a loan at for example 8percent, should i then use this interest rate to discount my business future cashflow?
TRUTH!!
Can’t remember him making a correct call
VERY GOOD!
Ray Dalio is a great investor.
Stocks will always go up after going down. So own the index and have time on your side. Classic value investing. Maybe look into a select few individual stocks to own truly great businesses (copy Warren Buffet) and don’t try fancy stuff. Art is speculative and doesn’t produce cashflow. It can generate returns but it’s not really investing.
Was sitting on cash
invested heavily
PF went down by 20%
now including inflation I am down 27%
😝
That masterwork ad was flawlessly included
Ring me up when it's the dip
Thank you for these videos. Always well explained and I can tell you out a lot of work into the production
I was under the impression that as interest rates rise, the price of existing bonds will fall. Wouldn't a portfolio with over 50% in treasuries perform poorly since their rates stay the same as newly issued bonds offer more attractive returns?