I can be stressed, or tired, and I can go into a meditation and it all just flows off of me. I'll come out of it refreshed and centered and that's how I'll feel and it'll carry through the day.
Ray DalioRead
When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up.
Interpretation
What this quote means
Market reactions are typically driven by the disparity between expectations and reality regarding growth and inflation.
Ray Dalio's quote highlights the intricate relationship between economic growth indicators and financial market performance. It suggests that both stocks and bonds are influenced by how actual economic growth and inflation rates compare to investor expectations, emphasizing the volatility and unpredictability of financial markets.
Themes
GrowthInflationStocksBondsMarketExpectations
In practice
Example use cases
This quote can be used in a financial analysis presentation to explain investment strategies.
More from Ray Dalio
All quotes →There are two main drivers of asset class returns - inflation and growth.
Ray DalioRead
There is a strong tendency to get used to and accept very bad things that would be shocking if seen with fresh eyes.
Ray DalioRead
The pain of problems is a call to find solutions rather than a reason for unhappiness and inaction, so it's silly, pointless, and harmful to be upset at the problems and choices that come at you (though it’s understandable).
Ray DalioRead
Meditation more than anything in my life was the biggest ingredient of whatever success I've had.
Ray DalioRead
Credit is a promise to deliver money. It will produce GDP but you'll create credit... So you reach a certain point that that you can't do that anymore... There are choices. And how do we best support, apportion the money? How much is going to be transferred?
Ray DalioRead
Similar quotes
Don’t ever average losers. Decrease your trading volume when you are trading poorly; increase your volume when you are trading well. Never trade in situations where you don’t have control. For example, I don’t risk significant amounts of money in front of key reports, since that is gambling, not trading.
Paul Tudor JonesRead
How did you go bankrupt?" Two ways. Gradually, then suddenly.
Ernest HemingwayRead
If you owe your bank manager a thousand pounds, you are at his mercy. If you owe him a million pounds, he is at your mercy.
John Maynard KeynesRead
Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it.
Warren BuffettRead
Finance is not merely about making money. It's about achieving our deep goals and protecting the fruits of our labor. It's about stewardship and, therefore, about achieving the good society.
Robert J. ShillerRead
While the move to central clearing has made the system safer, we need to make sure that the central counterparties have the resources and risk-management practices to withstand plausible but severe shocks.
Jerome PowellRead