Ray Dalio

They're not going to be successful of it.

They get excited if a war happens and all of that.

But the most important thing is to have a well-diversified, well-structured portfolio and to look at the assets in the portfolio in relationship to each other.

For example, as an inclination,

I would say, how much gold do you have in the portfolio?

You shouldn't have too much and you shouldn't have too little, but it is an effective diversifier to other assets that you probably do have in a portfolio because when you have a bad set of circumstances,

um, gold tends to do well because of either the debt problem or the world war problems and so on and so forth.

And, um, not to market time gold, not to, but to basically realize that it's a currency.

Yeah.

Uh, it's a, not only a long-term currency, but today it's the second largest reserve currency held by central banks.

First dollars are

then gold, then euros, then Japanese yen.

And to have, for example, somewhere between 5% and 15% of that portfolio in that diversifies the other parts of it.

I would worry about debt.

And you should understand like cash, which people think is the safest investment, is the most assuredly bad investment in most times, normally, because cash has a lower return, but it's particularly a bad investment

in a period of stagflation so we're dealing with um kind of a stagflation kind of environment or an uncertain but to achieve um and debt has its challenges so i would say the most important thing is to know how to diversify well and that also includes um

Local, you know, outside of the United States as well as inside of the United States.

That may seem very difficult to people because also right now there's a lot of concentration in the areas like tech.

In other words, and particularly A.I.,

And one might figure, okay, that you're going to miss out on that.