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Ray Dalio: Smart Investment Allocation for 2025

In this interview, Ray Dalio highlights that while investors often prioritize buying great companies, they frequently neglect the critical factor of pricing, which can transform even a great company into a poor investment if it’s overvalued.

This issue is especially relevant in a high-interest-rate environment, like the late 1990s, when overvalued assets were prevalent. Dalio emphasizes the need to carefully assess rising interest rates and asset pricing.

Ray also underscores the importance of diversification, as markets are heavily leveraged long, with many relying on asset appreciation. Incorporating uncorrelated assets like gold can help reduce portfolio risk by enhancing balance and minimizing correlation. To navigate market cycles effectively, investors must focus on pricing, interest rates, and diversification.

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Disclaimer of liability

The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

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