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So there's obviously multiple ways to invest. Warren Buffet's method is to find really good deals on stocks and then fix what's wrong with their business; provi
by sleepysysadmin 7y ago
So there's obviously multiple ways to invest. Warren Buffet's method is to find really good deals on stocks and then fix what's wrong with their business; providing a value.
Other people look for bullshit(the owners had lied in some way) like improperly rated options. As we saw during the financial crisis, the rating companies were lying about risk and AAA mortgages were much lower. You can go down a lot before the return happens.
Some people look for patterns. In this case Ray Dalio is looking at the debt cycle pattern and predicting we are in for a long term debt cycle.
If he's right, there's a rush to get debt on the books, which we are seeing. Which artificially inflates the market right before the crash. S&P500 January 1st was about 2500. It was over 3000. The general stock market of bluechips were up 20% YTD over 7 months. Sorry but that's an absolutely ridiculous number.
The problem is that if you're predicting a crash and are betting against it; you would be down 20% YTD. IF Ray is correct, he's going to be cashing in bigtime.