
Ray Dalio's Flagship Hedge Fund Has Fallen 6% This Year - hhs
https://www.bloomberg.com/news/articles/2019-08-29/dalio-s-flagship-hedge-fund-gets-burned-by-wrong-way-rate-bets
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sleepysysadmin
So there's obviously multiple ways to invest. Warren Buffet's method is to
find really good deals on stocks and then fix what's wrong with their
business; providing a value.

Other people look for bullshit(the owners had lied in some way) like
improperly rated options. As we saw during the financial crisis, the rating
companies were lying about risk and AAA mortgages were much lower. You can go
down a lot before the return happens.

Some people look for patterns. In this case Ray Dalio is looking at the debt
cycle pattern and predicting we are in for a long term debt cycle.

If he's right, there's a rush to get debt on the books, which we are seeing.
Which artificially inflates the market right before the crash. S&P500 January
1st was about 2500. It was over 3000. The general stock market of bluechips
were up 20% YTD over 7 months. Sorry but that's an absolutely ridiculous
number.

The problem is that if you're predicting a crash and are betting against it;
you would be down 20% YTD. IF Ray is correct, he's going to be cashing in
bigtime.

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lordnacho
This isn't anything but noise. There's lots of funds, some of them go up, some
go down. The fact Ray Dalio is famous doesn't matter a whole lot, 6% isn't a
huge amount either.

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hhs
I agree, it’s useful to look at these types of funds over time. Thought it
would be useful to post since there was some context in the piece.

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RickJWagner
I read the headline and thought it was improbable (thinking of the famous All-
Weather Fund).

Then I read further, seeing AWF is a 'bright spot'. All those bonds are doing
their job!

