<\/p>\n
Billionaire hedge fund legend Ray Dalio thinks investors aren\u2019t paying attention to obvious factors in meme stock trading.<\/p>\n
Dalio says<\/a> in a new post on X that there\u2019s always a \u201ccurrent most popular meme\u201d that everyone believes in but is bound to lose its status.<\/p>\n \u201cThese memes typically are due to a mix of extrapolating what happened before and emotional considerations. Also, most investors typically don\u2019t take into consideration market pricing. In other words, they tend to identify what has been a great investment (e.g., a strongly performing company) as great, and they don\u2019t pay enough attention to its pricing, even though its pricing (whether it is cheap or expensive) is the most important thing.\u201d<\/em><\/p>\n Dalio says this behavior sets the stage for potential market missteps, especially in the current economic climate.<\/p>\n At this time, it is typical for almost everyone to be looking to make money by buying assets that they believe will go up (rather than betting on them going down), and they quite often use leverage.\u201d<\/em><\/p>\n Dalio\u2019s meme trading advice follows dire warnings he\u2019s recently issued about the US economy. Earlier this month, Dalio argued<\/a> in an interview on PBS that the government needs to lower its budget deficit as a percentage of GDP from 7% to 3%.<\/p>\n \u201cIt has to be done with three things, and it has to be spread out among these three things, because any one of those three things would be too painful. Those three things are tax revenue, spending cuts and interest rates.<\/em><\/p>\n Although Congress and the president in the process does not deal directly with the third of those, right now a trillion dollars \u2013 half of our deficit \u2013 is interest payments, and not only do we have a trillion dollar interest payment, in the next year, we have nine trillion dollars of debt maturing that has to be either rolled over or sold\u2026<\/em><\/p>\n So there\u2019s what I call my 3%, three-part solution, which was very similar to 1991-1998. It was cut by 5% of GDP, the budget deficit, in those years was cut by 5% of GDP by spreading it around. So those are the three things that are needed.\u201d<\/em><\/p>\n Follow us on X<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>   Generated Image: DALLE3<\/em><\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Billionaire hedge fund legend Ray Dalio thinks investors aren\u2019t paying attention to obvious factors in meme stock trading. Dalio says in a new post on X that there\u2019s always a \u201ccurrent most popular meme\u201d that everyone believes in but is bound to lose its status. \u201cThese memes typically are due to a mix of extrapolating […]<\/p>\n","protected":false},"author":2,"featured_media":395197,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-395195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/395195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=395195"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/395195\/revisions"}],"predecessor-version":[{"id":395199,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/395195\/revisions\/395199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/395197"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=395195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=395195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=395195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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