According to Ray Dalio, navigating markets well requires one to be more accurate about what is going to happen than the consensus view that is built into the price. â??The worst thing one can do, especially late in a paradigm, is to build oneâ??s portfolio based on what would have worked well over the prior 10 years, yet thatâ??s typical.

We pay particular attention to embedded beliefs in financial markets and assess risks and opportunities in this context. We look to identify how new informationâ??or the changing interpretation of existing informationâ??may change asset pricing, along with the views and behaviors of other market participants. Financial markets today have been grossly distorted by years of low inflation. If we are correct in our thinking, a number of new investment themes will emerge as the low inflation environment gradually comes to an end.

With macro risks diminishingâ??the Fed pivot, US-China trade deal, and recovery in manufacturing activityâ??investors toda


Source: Barron’s