**Ray Dalio’s Advice to New Investors Amid Economic and Geopolitical Challenges**
Renowned U.S. billionaire and hedge fund manager, [Ray Dalio](https://www.cnbc.com/ray-dalio/), has offered some pertinent advice to new investors. Dalio, founder of one of the world’s largest hedge funds, Bridgewater Associates, recommends maintaining a diversified portfolio in the face of ongoing economic and geopolitical turbulence.
“Diversification can reduce your risk without reducing them sharply if you know how to do it well,” he said at the Milken Institute Asia Summit in Singapore last week. Dalio emphasized the need for investors to be aware of the significant disruptions that are anticipated to occur in the next five years, with each year bringing radical changes.
**Dalio on the Impact of AI on Investment Strategies**
Dalio also expressed his fascination with the evolution of artificial intelligence (AI) and its impact on investment decisions. He suggested that investors should focus on companies that effectively incorporate this new technology rather than those that are developing it.
“We’re going to be in a different world. And the disruptors will be disrupted,” Dalio said. “I don’t need to pick those who are creating the new technologies. I need to really pick those who are using the new technologies in the best possible way.”
**Dalio’s View of Asia as an Exciting Investment Region**
In his address to the audience at the Singapore summit, Dalio lauded the city-state as a “very special place, in what will be a very exciting region.” With the changing world landscape and world order, he views Singapore as an ideal hub for investors.
When asked about the increasing number of family offices setting up in Singapore, Dalio shared his top three considerations for investing in a country. He stated that a country needs a strong income statement and balance sheet, a civil environment where people work together for a common good, and a clear stance in international conflicts.
**The Biggest Mistake Investors Make**
Dalio warned against the common fallacy among investors to view markets that have performed well as good investments. He stressed that these markets are often more expensive, making them less viable for investment. His comments serve as a reminder to investors to approach market trends with a critical eye and an understanding of the broader economic landscape.
Original Story at www.cnbc.com – 2023-09-18 02:06:00
Comments are closed.