Ray Dalio: STOP Trying to Time the Market

Ray Dalio talks about why you should stop trying to time the market. In this interview with CNBC, Ray Dalio says that "cash is trash" and trying to jump in and out of the market into holding cash is a "fool's game". Ray Dalio has been clear on his thoughts around the economy and inflation. He believes cash is a risky investment due to the fact that inflation erodes the purchasing power of cash. In order invest during inflation and without trying to time the market, Ray Dalio suggests using investing in an "all weather portfolio" that is diversified.

After watching this video you will have a better understanding of the following topics: Ray Dalio's thoughts on inflation, why cash is trash, how to time the stock market, Ray Dalio's investing approach, Ray Dalio's all weather portfolio, and how to diversify your portfolio

Link to Investor Center Patreon where I post all the tools and resources I personally used to grow my portfolio to $300,000 at 24 years old:

[InvestorCenter]

Hey everyone! Just wanted to say I appreciate all your support of the channel :)

[anonymousperson]

You're 24 and are thinking of these things. You'll do well, good job!

[gaurav_lohani_]

can i know some of your portfolio stocks that you have invested in ? plz

[cesardrudi]

Building a portfolio at 24 and allready own rental property? Wow! Good for you! I started at 31…Also I dont own a rental property. Only my own home and a small piece of forest (15 hectares).

[chessdad]

i had a stretch of almost several years where I was convinced the market would fall so largely held out of the market. LOL. What a terrible mistake. But if you hear enough negative stuff, your brain reacts accordingly. Now I mostly ignore all the negative prattle on YouTube and just invest in profitable companies.

[puppetmaster]

He’s 100% correct. You can’t time the market!

[johnsanders]

Great job and I am with GAPS Coach, I wish my children were as wise on making money work as you are. I especially liked this video discussing Ray's perspective. I have been investing 36 percent of my portfolio for just over a year in TIPS and the rest in domestic and international stocks. Diversification is and always has been KEY!

[xvx]

The strategy I use is a hybrid of time in and timing the market. I pretty much only buy dividend stocks and deposit the money into my core account rather than reinvesting them. This allows me to not only hunt for deals but if I feel like the market is becoming unstable I can wait a few months for the waters to calm down before putting more money in. So far it's worked pretty well and currently I've beat the S&P.

[jimbeauchamp]

Excellent presentation! On taxes: The top Federal rate on long term gains is actually 23.8% because of ACA 3.8% on income above AGI of $200, 000. The top ordinary tax rate is 40.8% because ACA adder! Then there are STATE taxes on income. In CA income taxes are as high as 13.3%. But of course if you're very wealthy your tax accountant and lawyers will find a way to reduce the impact of taxes. Taxes are actually biggest enemy of growing wealth in America. Not inflation!

[usadaytrader]

Ray Dalio just wants the retail investor to get stuck holding the bag

[dadplaysgolf]

Cash would have been an amazing investment this year.

[Joelegolvan]

Great vid. It seems like recently Ray was talking about how he’s not a fan of bonds because of inflation. Wondering what your thoughts are on this. Also I like you, I have cash flowing rental real estate in my portfolio. To me that is less risky than stocks especially with the amount of cash flow they produce. Do you think that would be an alternative to bonds? I know your graph had real estate at the top pyramid, depending on what type of real estate this of course. Could be true but low leverage cash flowing real estate in my opinion would be safer than equities?

[nwpete]

With a good understanding of macro economics, fundamentals, and technical analysis, it is somewhat possible.

[mjss]

Ray Dalio talking about not timing the market all the while he periodically puts out that the market is going to crash thereby causing most people to act in the very manner that he claims to be against.

If he believed what he said he would not prognosticate about the "market"

[yackawaytube]

Ray Dalio is right - you cannot time the market. But you can time individual stocks.

[alemadd]

Return on gov bonds 3% ? Corporate bonds 5%? Stocks 10%? Are u talking about China?

[stevezaiser]

Ray's argument for staying out of cash and being diversified is that wealth isn't typically destroyed, it just moves around between asset classes. I'm not so sure that's an accurate assumption these days. The Fed is almost certainly going to be tightening this year (raising interest rates), which is bad news for both stocks and bonds. Bank stocks might perform well, but most other sectors are vulnerable...especially technology. I disagree with Ray. Equities and bonds are both at all time highs and carry significant risk with the fed shifting gears. Cash might cost you due to inflation, but it's debatable how much inflation will be over the next couple years. I'll gladly pay that cost to avoid the massive downside risk in stocks and bonds. Of course, it might mean I never retire. :)

[timw]

ray dalio is wrong about inflation. Deflation is the worry and when it comes everyone will say i told you so. They dont understand that we are overconsuming but as soon as things return to normal it will be deflation we shoudl be worried about. Consumption is coming to an end and nobody sees it happening.

[JM-gjde]

Sorry, Ray. I'm staying mainly in cash for now. Good luck with your Chinese investments...genius.

[timw]

all weather or diversified portfolios do nothing for the investor. thats not investing thats just throwing money at a wall and hoping it sticks. Dumb idea and buffet munger both disagree with this type of investing