Bridgewater Associates founder Ray Dalio: 10 Wealth Management Principles for Chinese Friends from Asset Allocation to Wealth Inheritance

⚡️ Cash is a poor long-term investment: Dalio believes that cash will depreciate over time due to inflation, and investors should avoid excessive holdings in cash or real estate, instead pursuing diversified asset allocation.

⚡️ Two components of asset returns: Returns come from price changes and coupons; if returns mainly rely on price appreciation rather than coupons, one should be cautious of risks and timely rebalancing actions.

⚡️ Diversified investment and risk balance: Regardless of market highs or lows, diversification is always important. By holding 10-15 uncorrelated assets, one can significantly reduce risk and improve the risk-return ratio.

⚡️ Avoid predicting market timing: Timing the market is a zero-sum game, making it difficult for individual investors to succeed. It is recommended to adopt a fixed investment strategy or build a neutral investment portfolio instead of trying to time the market.

⚡️ The allocation value of gold: Gold, as a non-productive asset, performs well during currency depreciation; optimizing its proportion in the portfolio to about 15% can effectively hedge against currency risk.

⚡️ Views on Bitcoin and stablecoins: Bitcoin is held as a diversification tool, but gold is more favored by central banks; stablecoins are suitable for trading convenience rather than wealth storage, as they yield no interest and depend on pegged currencies.

⚡️ Structural risks of the US dollar and US Treasury bonds: Excessive debt may lead to currency issuance or rising interest rates, putting long-term downward pressure on the dollar, necessitating attention to the supply-demand relationship of debt.

⚡️ Basics of family wealth management: Savings are a source of security; one should ensure the safety of basic living funds before pursuing high-risk returns. #Dalio educates his grandchildren on wealth inheritance by gifting coins#

⚡️ The discipline of rebalancing: Regularly adjusting the investment portfolio to maintain strategic allocation goals helps overcome emotional decision-making, selling high for profit, buying low, and maintaining investment discipline.

⚡️ The advantages of inflation-indexed bonds: They can compensate based on the inflation rate and provide real interest rates, making them an ideal low-risk savings tool, although the Chinese market has yet to launch them.

The above content is for informational sharing only and does not constitute any investment advice! Follow me for more market information shared daily. #特朗普罢免美联储理事库克