Longtime readers will know that I am a big fan of the work put out by Bridgewater Associates. In fact, the subtitle of the blog, "Engineering Targeted Returns and Risk", is lifted from one of their research pieces on optimal beta portfolios. Dalio had an interested interview in Barron’s in which he talked about the "D-process". Interestingly enough he advocated a position in gold which was up $30 or so Wednesday to $940:
Are you a fan of gold?
Yes.
Have you always been?
No. Gold is horrible sometimes and great other times. But like any other asset class, everybody always should have a piece of it in their portfolio.
What is your view on stocks?
Buying equities and taking on those risks in late 2009, or more likely 2010, will be a great move because equities will be much cheaper than now. It is going to be a buying opportunity of the century.
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