Dalio Defends His Decades-Long Investment in China (2024)
Bridgewater Associates founder Ray Dalio defended his decades-long investment in China and pledged he won’t abandon the world’s second-largest economy even with all of the problems there he’s identified and the risks of a war with his own country, the US.
“I have had a wonderful 40-year relationship with the Chinese people and the Chinese culture that has led me to love them. For me, being involved with them and their markets go together and I wouldn’t want to be without either,” the billionaire investor wrote in a LinkedIn post. “I don’t jump in when things are booming and jump out when things are tough because I am neither ‘a fair-weather friend’ nor ‘a fair-weather investor.’”
Ray Dalio, chief investment officer at Bridgewater Associates, took to LinkedIn on Tuesday to defend his continued investments in China — a market he views as crucial to “understand the world” and for “diversification.”
The long-term China bull's latest remarks follow his endorsem*nt of the country's battered markets earlier this year. “The time to buy is when everyone hates the market and it's cheap, which is now the case in Chinese equities,” Dalio wrote on his LinkedIn blog in April.
Another key principle is diversification, which Dalio views as the holy grail of investing. This is especially true when it comes to different asset classes – groups of similar assets such as stocks, bonds, real estate, and so on – that don't move in the same way in a given economic environment.
That depends on the type of investor involved. There's no doubt that the potential is huge. China is home to about one-fifth of the world's population, and its economy is massive and keeps growing at a fast pace. A low correlation with other major world markets also makes it a great diversifier.
The Tesla chief executive chose China because its market is bigger. But competition is intense even there. Cheaper cars might hold the key. Elon Musk's recent trip to China kicked up intense debates in India.
Introduction: My name is Allyn Kozey, I am a outstanding, colorful, adventurous, encouraging, zealous, tender, helpful person who loves writing and wants to share my knowledge and understanding with you.
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