Gold will be a Paradigm Shift in Upcoming Days
Introduction:
Ray Dalio is an American billionaire investor and hedge fund manager who has also served as a chief investment officer of the world's largest hedge fund. He has also been regarded as the greatest innovator in the world of finance. He follows multiple strategies when working with his own associates. He made bridge water associates which he considered as a global macro firm. In that associate investing around economic trends such as inflation, GDP growth and exchange rates.
He divides his investment in to two different areas:
1.Alpha investment
2.Beta investment
Alpha investment
They are actively managed and aim to produce better runs than the beta investment. It is a better financial arrangement.
Beta investment
It produces passive management and normal market risk
Words on gold
Dalio being more aggressive on the policies which are going to devalue currencies. These currency differences will cause a paradigm shift in investing. According to Dalio, gold is considered as returning investment. He thought that the value of money will be depreciated as national and international conflicts are also significant.
He also thinks that investing in gold is a true asset and will have a balanced portfolio with reduced number of risks. For this to have reduced the number of risks along with returning investment gold should be added to the portfolio of the investment. Gold is considered as portfolio diversifier
He surprisingly stated that the gold price has become much higher day by day and increased UpTo 0.7% which is $1421 an ounce.
During the crisis period gold has become the paradigm shift in terms of investment. Investors need to change their minds in terms of investment about what material will be in long run after the period of crises and increased inflation rate.
In this era mostly people get caught overextended doing something very popular and invest their valuable money and then regret it .
He also embarked on the importance of gold that in upcoming years monetization of debris be and currency rates will eventually go high which will reduce the value of money then real assets move to another turn. It means that people will look forward to new ways of investment .
Dalio put more emphasis on gold investment rather than Bitcoin. As he believed that Bitcoin is a digital currency which is going up And down but gold is a true solid investment which is going to give good return.
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