Why Dalio's Risk-Parity Trade No Longer Looks Attractive

Ray Dalio's Bridgewater Associates wooed investors with so-called risk-parity funds that emphasized diversification after the Great Financial Crisis, but that approach has underperformed for years, according to Bloomberg's Justina Lee. Yet some of the forces that once helped equities, such as globalization, are now unraveling, Lee tells Sonali Basak on "Bloomberg Markets."
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[@ned5162]

When your fund produces worse returns than risk free US gov bonds, of course investors are gonna withdraw their money

[@djayjp]

I doubt that's the case.

[@williamw8546]

Aren’t Dalio’s strategies is about less risk during financial downturns? So even if it doesn’t do so well now it doesn’t matter

[@LivingWithGout]

The age of cheap money is over.

[@gordongekko2781]

Agreed. But, no one seems to comprehend that yet. Still hear talk of "high rates". 4-5% is NORMAL, not high.

[@chuyenpham3336]

Greatttt

[@sumitomoO0O]

My diversification strategy works like crazy...I put 30% in energy stocks from Jupiter, 30% in government bonds from Pluto west region, and remaining 40% on high yield AA+ mining corporates from Saturn.

[@gordongekko2781]

Sorry to blow a hole in your investment thesis, but Saturn is a gas giant. Should've done more on-site research before transferring your credits to the Galactic Exchange.

[@rohanrodrigues1400]

When will the house of cards coming crashing down?

[@christianfavre9095]

Dalio is a scammer