Timely Investment Wisdom. Dalio. Singer. Farrell.

Ray Dalio explains the policy and economic predicament

Paul Singer experiences the arrogance and failure of policy makers

Bob Farrell’s illustrated 10 investment rules


Cartoon of the Day: Fed Fingers - Fed La La Land cartoon 09.15.2016

 

Ray Dalio explains the policy and economic predicament

Ray Dalio seems to agree with Stan Druckenmiller that we are in the endgame of global monetary policy. The manager of the world’s biggest hedge fund had this to say in the video below:

“There’s only so much you can squeeze out of the debt cycle, and we’re there globally,” the head of Bridgewater Associates said at the Delivering Alpha conference presented by CNBC and Institutional Investor.

“We are to various degrees close to pushing on a string,” he said.

Here is the video interview:

http://www.cnbc.com/2016/09/13/bridgewaters-dalio-theres-a-dangerous-situation-in-the-debt-market-now.html

Dalio also says it would be wrong to raise rates.

http://www.bing.com/videos/search?q=dalio+video+cnbc&view=detail&mid=BA4B7F5626EFAA21523ABA4B7F5626EFAA21523A&FORM=VIRE

 

This Week In Hedgeye Cartoons - Rate hike cartoon 11.30.2015 large

Paul Singer experiences the arrogance and failure of policy makers

Paull Singer shares his experience of repeated warnings to policy makers prior to 2008. Don’t expect the policy makers to right the ship this time either.

Singer spoke as the Fed weighs whether to enact just its second rate increase in more than 10 years and its first since December, the hedge funder said policy makers acted with “amazing arrogance” when he and others were warning of the financial crisis that would explode in 2008.

“What they have done is created a tremendous increase in hidden risk, risk that investors don’t exactly know or have faced about their holdings,” he said at the conference presented by CNBC andInstitutional Investor. “I think it’s a very dangerous time in the global economy and global financial markets.”

http://www.cnbc.com/2016/09/13/elliott-management-founder-singer-low-rates-radical-monetary-policy-have-not-led-to-sustainable-growth.html

 

This Week In Hedgeye Cartoons - Fed cartoon 06.10.2016

Bob Farrell’s illustrated 10 investment rules

So Investors have been put on notice and should pay careful attention when the most successful investors of recent decades are warning that this is a critical point in time.

How should investors review their allocations? A good starting point might be to work through Bob Farrell’s timeless guidance.

“Bob is a Wall Street veteran with over 50 years of experience in crafting his investing rules. Farrell obtained his master’s degree from Columbia Business School and started as a technical analyst at Merrill Lynch in 1957. Even though Farrell studied fundamental analysis under Gramm and Dodd, he turned to technical analysis after realizing there was more to stock prices than balance sheets and income statements. Farrell became a pioneer in sentiment studies and market psychology. His 10 rules on investing stem from personal experience with dull markets, bull markets, bear markets, crashes, and bubbles. In short, Farrell has seen it all and lived to tell about it.”

Lance Roberts has done a wonderful job of going through all 10 of Bob Farrell’s timeless investment rules and has provided current market context. Don’t make the mistake of thinking that this is easy or doesn’t apply to you. As Lance points out most investors underperform for this very reason, as shown in the results in the header chart. So often investors think the following:

” “I am a long term, fundamental value, investor.  So these rules don’t really apply to me.”

No, you’re not. Yes, they do.”   Lance Roberts (see below)

 

Bob Farrell’s Illustrated 10-Investment Rules

 

 

 

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