Bridgewater Associates' Dalio: You should become a global macro long-short investor, "going long on good assets and short on bad assets" will inevitably make money.

Bridgewater Associates Founder Ray Dalio Releases Long Article on X Platform Today (4th), Emphasizing the Strong Recommendation for the Public to Become "Global Macro Long-Short Investors." He Highlights that macro forces drive all markets, and through long-short operations and flexible deployment of global liquidity assets, investors can profit in any economic environment.
(Background: Bridgewater Founder Ray Dalio Warns: AI Market Shows Signs of Bubble, Profitability is the Key to Collapse)
(Additional context: Bridgewater's Ray Dalio Warns: The Three Major Orders Are Collapsing, the U.S. Is Entering a Major Downward Cycle)

Table of Contents

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• Macro Forces Determine the Success or Failure of Asset Allocation
• Flexible Long-Short Operations, Profiting in Any Environment
• Preference for Liquid Public Markets, Seeing Through the Essence of World Operations

The world's largest hedge fund, Bridgewater Associates founder and legendary macro investment master Ray Dalio, published a lengthy article today (4th) on X platform. Dalio states that he is currently in a phase of "desire to pass on principles" in his life, and elaborates in detail why he strongly recommends people to become "Global Macro Long-Short Investors."

Macro Forces Determine the Success or Failure of Asset Allocation

Dalio observes that most investors choose a particular investment approach often due to "accidental exposure" rather than deliberate, thoughtful selection. To select the best investment type without bias, he advocates for global macro investing.

He explains that all markets are deeply influenced by macro forces. The most important decision investors must make is "asset allocation," that is, how much to invest in stocks, bonds, commodities, real estate, and gold. "This itself is a macro decision," Dalio points out, noting that the huge fluctuations in portfolio value come from the relative value changes among these asset classes driven by macro forces. With a macro perspective, one can accurately construct a balanced portfolio and make tactical adjustments among asset classes.

Flexible Long-Short Operations, Profiting in Any Environment

Compared to investors who focus solely on a single asset class and can only "go long," Dalio believes this group is more susceptible to market cyclical fluctuations, often beyond their control.

In contrast, as a global macro long-short investor, one can flexibly navigate different liquidity markets across countries. Dalio emphasizes that this strategy allows investors to "go long good assets and short bad assets," enabling bets on almost anything and making money in any economic environment. He even straightforwardly states, "Apart from personal mistakes, there’s no excuse not to make money."

Preference for Liquid Public Markets, Seeing Through the Essence of World Operations

Regarding market choices, Dalio clearly states that high-liquidity public markets are preferable to illiquid private markets. Public markets give investors great flexibility, allowing them to rebalance positions anytime as circumstances and viewpoints change, and to access more reliable information.

Finally, Dalio summarizes that global macro investing is an "interesting, fascinating, and rewarding game." It encourages investors to pay attention to major global events, turn theories about the world into market bets, and gain feedback and generous returns from it.