Legend of the billionaire Hedgefonds Ray Dalio thinks that investors do not pay attention to obvious factors in the trade in meme shares.
Dalio out In a new message on X that there is always a “current most popular meme” in which everyone believes, but will certainly lose his status.
“These memes are usually due to a mix of extrapolating what happened before and emotional considerations. Also most investors usually do not take market prices into account. In other words, they tend to identify what a big investment is (for example a strong performing company), and they do not pay enough attention to the prices) the most important.”
Dalio says that this behavior is the stage for possible market disorders, especially in the current economic climate.
At the moment it is typical for almost everyone to make money by buying assets that they think will rise (instead of gambling on them), and they often use leverage. “
Dalios Meme -Handelsadvies follows major warnings he recently given about the American economy. Earlier this month, Dalio argued in an interview on PBS that the government must lower its budget deficit as a percentage of GDP from 7% to 3%.
“It has to be done with three things, and it must be spread over these three things, because one of those three things would be too painful. Those three things are tax revenues, cutbacks and interest rates.
Although the congress and the president in the trial do not handle the third of them directly, a trillion is currently a trillion – half of our shortage – interest payments, and not only do we have a trillion of trillion dollar, in the following year we have nine trillion dollars to be rolled or sold …
So there is what I call my 3%, three-part solution, which seemed very much on 1991-1998. It was lowered by 5% of GDP, the budget deficit, in those years 5% of GDP was lowered by spreading it. So those are the three things that are needed. “
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Generated image: dalle3