Ray Dalio: How To Invest During Periods Of Volatility

In his recent interview with The Hustle Daily Show, Ray Dalio discussed how to invest during periods of volatility. Here’s an excerpt from the interview:

Host: How do you generally think about moments of volatility, like the one we’re in now, from an investing vantage point?

Dalio: I would worry about holding assets that are prone to deflate.

When you hold a bond or a money market fund, you’re going to get an interest rate [that] is substantially below the inflation rate, so you’ll lose buying power. Diversify well.

[If I were] to pick countries [for foreign investments], there are three questions I’d ask:

1. Is the country earning more than it’s spending?
2. Does it have internal order where people are working well with each other to be productive?
3. Is it at risk of being drawn into an international war?

You can listen to the entire interview here: