| When entering this second phase of life, you are almost certainly making the mistake of thinking you know more than you actually know—especially if you got good grades in school. You were taught that success is a matter of learning what you were taught and not making mistakes. That probably made you a bit arrogant, like I was when I graduated. But it is living life and encountering your realities that will truly teach you. The question is, will you learn? You can watch the full speech: |
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People often ask whether China or the West is “winning.”
That’s the wrong question.
The more useful question is: how do different systems work, and what trade-offs do they make?
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Gold Is A Very Selective Diversifier
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Its true value lies in what it isn’t: it is not a fiat currency. Because of this, it serves as a powerful diversifier when conditions are bad for ordinary financial assets.
Most investors make the mistake of trying to "time" the market—jumping between stocks, bonds, and gold. Even for professionals, that is a losing game. The better approach? Build a balanced, highly diversified strategic asset allocation that can weather any environment.
What’s Happening With Money Now Has Happened Before
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Watching the news today feels a lot like watching a movie I’ve seen many times before.
In 1971, I witnessed a major currency devaluation that I thought would be a disaster—but the markets actually went up. It was a lesson I only learned by looking back at 1933. When you study the historical "scripts," the current plot becomes much clearer.
What You’re Missing about the World War
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I break this down in my latest article, “The Big Thing: We Are in a World War That Isn’t Going to End Anytime Soon,” available on LinkedIn here: https://www.linkedin.com/pulse/big-thing-we-world-war-isnt-going-end-anytime-soon-ray-dalio-sbrqe
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The True Source of My Motivation
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The most important thing is that you have the life that you want to have. So, how you define success is important. There isn’t one path that’s right for everyone.
I was lucky in the sense that I fell in love with markets and playing the investment the game, which is what I’ve done for 50 years.
I recommend that people think about their own nature and what game they’d love to spend years playing. It’s okay to explore different paths—not everyone knows right away. Think of your journey as a process of discovery.
If you’re interested, you can find my full conversation with Bloomberg here. We discussed life, debt, global crisis, and the importance of investing in our oceans:
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