In his recent interview with The Hustle Daily Show, Ray Dalio discussed how to invest during periods of volatility. Here’s an excerpt from the interview:
Host: How do you generally think about moments of volatility, like the one we’re in now, from an investing vantage point?
Dalio: I would worry about holding assets that are prone to deflate.
When you hold a bond or a money market fund, you’re going to get an interest rate [that] is substantially below the inflation rate, so you’ll lose buying power. Diversify well.
[If I were] to pick countries [for foreign investments], there are three questions I’d ask:- Is the country earning more than it’s spending?
- Does it have internal order where people are working well with each other to be productive?
- Is it at risk of being drawn into an international war?
You can listen to the entire interview here:
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