Trade like Ray Dalio

Quote from marketsurfer:

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He emphasized that when building a portfolio, the ideal number of uncorrelated return streams is 15. Dalio believes that at exactly 15 uncorrelated investments, an investor's risk factor is reduced by 80%.

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I wonder how he finds 15 uncorrelated investments in today's market...
 
no... sounds like I should have.


Quote from marketsurfer:

Thanks Jem. Reading the article gave me flashbacks to Robert Ringer and his books --- looking out for #1, restoring the American dream, and winning thru intimidation. Have you read these? Ringer is real big on the reality thing.

surf
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Quote from karoshiman:

I wonder how he finds 15 uncorrelated investments in today's market...
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My opinion:

His ideas on correlation are not the traditional. He has gone on record saying that there is no such thing as correlation. Just because two instruments are mathematically correlated, does not mean that the fundamentals that drive the instruments are related. It could be by chance. So, he takes it further to find drivers that may have lapping correlation but ultimately "uncorrelated". Something along that lines. Pls don't read to much into what I've said. I've just tried to explain it a bit for you. You would understand it better by reading his stuff to understand where he is coming from.
 
Quote from jem:

many of those points ring true.
That 30 year one seems very relevant as I get close to 50.

thanks
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No doubt. I'm willing to bet Dalio has some Ringer influence.

surf
 
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