A Quote by Ray Dalio
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.
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When growth is slower than expected, stocks go down. When inflation is higher than expected, bonds go down. When inflation's lower than expected, bonds go up.
For all your long-term investments, such as retirement accounts that you won't touch for at least ten years, you need a mix of stocks and bonds. Stocks offer the best shot at inflation-beating gains. But stocks don't always go up. That's where bonds come into play: They have less upside potential, but they also do not pack the same risk.
If I hit a game-winning shot, right, and I run back down the court and shake my teammates hands, it's because I expected to make it. Because I've practiced or I feel I've worked harder than everybody else. So why would I then go nuts, go crazy if I expected to do that? People don't understand that part about me.
A baby is expected. A trip is expected. News is expected. Forgetfulness is expected. An invitation is expected. Hope is expected. But memories are not expected. They just come.
Every portfolio benefits from bonds; they provide a cushion when the stock market hits a rough patch. But avoiding stocks completely could mean your investment won't grow any faster than the rate of inflation.
It seems women are expected to be so much more than men, which means we have to work that much harder. We're the ones under the microscope. We're expected to sound perfect. We're expected to look perfect all the time. We're expected to be style-setters, whereas the boys roll onto the stage in their jeans, T-shirts and baseball caps.
See the investment world as an ocean and buy where you get the most value for your money. Right now the value is in non-callable bonds. Most bonds are callable so when they start going up in price, the debtor calls them away from you. But the non-callable bonds, especially those non-callable for 25-30 years, can go way up in price if interest rates go way down.
Mathematics education is much more complicated than you expected, even though you expected it to be more complicated than you expected.
What I'm trying to say is that for the average investor, what I would encourage them to do is to understand there's inflation and growth - it can go higher and lower - and to have four different portfolios essentially that make up your total portfolio that gets you balanced.
What I'm trying to say is that for the average investor, what I would encourage them to do is to understand that there's inflation and growth. It can go higher and lower and to have four different portfolios essentially that make up your entire portfolio that gets you balanced.
Both from the standpoint of stocks and bonds, an investor wants to go where the growth is.
The essence of the problem is that the war against inflation is over, ... Ever since 1979 the Fed was fighting a war against inflation, and you always knew which way you wanted the inflation rate to go over the long run -- down.
Stocks always go down much faster than they go up. That's why it's called a crash. People who put their money into the stocks will find, all of a sudden, that stock prices are no longer being supported by the debt leveraging that's been holding them up.
When yields on corporate bonds are lower than dividends on stocks, that unnerves me.
It's important for you to understand that stock and bonds go up-and they go down. You need to be comfortable with that fact.
Because food and energy prices are volatile, it is often helpful to look at inflation excluding those two categories - known as core inflation - which is typically a better indicator of future overall inflation than recent readings of headline inflation.
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