I can be stressed, or tired, and I can go into a meditation and it all just flows off of me. I'll come out of it refreshed and centered and that's how I'll feel and it'll carry through the day.
Ray DalioRead
When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up.
Interpretation
Market reactions are typically driven by the disparity between expectations and reality regarding growth and inflation.
Ray Dalio's quote highlights the intricate relationship between economic growth indicators and financial market performance. It suggests that both stocks and bonds are influenced by how actual economic growth and inflation rates compare to investor expectations, emphasizing the volatility and unpredictability of financial markets.
In practice
This quote can be used in a financial analysis presentation to explain investment strategies.
I can be stressed, or tired, and I can go into a meditation and it all just flows off of me. I'll come out of it refreshed and centered and that's how I'll feel and it'll carry through the day.
There are two main drivers of asset class returns - inflation and growth.
There is a strong tendency to get used to and accept very bad things that would be shocking if seen with fresh eyes.
The pain of problems is a call to find solutions rather than a reason for unhappiness and inaction, so it's silly, pointless, and harmful to be upset at the problems and choices that come at you (though itβs understandable).
Meditation more than anything in my life was the biggest ingredient of whatever success I've had.
Credit is a promise to deliver money. It will produce GDP but you'll create credit... So you reach a certain point that that you can't do that anymore... There are choices. And how do we best support, apportion the money? How much is going to be transferred?
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
Not yet have I found any better method to prosper during the future financial chaos, which is likely to last many years, than to keep your net worth in shares of those corporations that have proven to have the widest profit margins and the most rapidly increasing profits. Earning power is likely to continue to be valuable, especially if diversified among many nations.
How did you go bankrupt?" Two ways. Gradually, then suddenly.
Most women file for bankruptcy in the aftermath of a serious medical problem, a job loss, or a family break up. It is hard to protect against those.
When you sell options, you get paid for assuming risk. That can be a profitable business, but it does not mix well with the risks inherent in a leveraged portfolio.
Never pay the slightest attention to what a company president ever says about his stock.
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