Billionaire Ray Dalio Calls For "Minor Correction": HODL Equities?

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Published : February 07th, 2018
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Category : Opinions and Analysis

Billionaire Ray Dalio, who founded the world’s largest hedge fund at Bridgewater Associates, sees a "minor correction".

Bid Declines Minor Corrections

The headline sounds bearish but the message sure isn't as the key paragraph explains.

Still, these big declines are just minor corrections in the scope of things (see charts of stocks and bonds below), there is a lot of cash on the side to buy on the break, and what comes next will be most important.

Note the irony: "Big declines are minor corrections." We have not have big declines.

Note the complete silliness: "There is a lot of cash on the side to buy on the break."

Unless Dalio is purposely spouting nonsense to get his investors to stay in the markets, the world's largest hedge fund founder has no idea how markets work.

It is mathematically impossible for cash to come into the markets for the simple reason, as discussed ad nauseam, that for every buyer there is a seller. Sideline cash does not change when someone buys stocks or bonds.

Do hedge fund managers really believe this sideline cash nonsense or are they purposely feeding their clients BS?

Either way, Dalio's message appears to be "HODL equities".

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Mish 13 abonnés
Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. He writes a global economics blog which has commentary 5-7 times a week. He also writes for the Daily Reckoning, Whiskey & Gunpowder, and has over 80 magazine and book cover credits. Visit
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