Marketbeat the Wall Street Journal financial blog posted by David Gaffen was voted one of Time magazine’s top 25 financial blogs. One of the posts about making your portfolio timeless caught my attention today. The crux of the interview with Bridgewater Associates founder Ray Dalio is that investors lost money in 2008 because their portfolios were designed for rising markets. The market in 2008 was more like 1931 which was a period of time before most current investors were even born. After bad times investors will then structure their portfolios for bad times which will hinder their performance during good times.
Follow the link below to read Dalio’s wise words. Ask yourself if your portfolio is now set up for good or bad times in the financial markets. Notice that Bridgewater’s actively managed hedge fund Pure Alpha earned 8.7% in 2008 while many of their other strategies suffered losses.