TechFlow news, October 17 — According to Caixin, in an interview with Ray Dalio, founder of Bridgewater Associates, he discussed investment strategies, asset allocation, and risk management in a low-interest-rate environment. He noted that Bridgewater's All Weather China Fund has achieved an average annualized return of about 16% over the past six years, primarily due to sound diversified allocation. By balancing around 15 uncorrelated sources of return, the fund reduces risk while generating returns, supplemented by tactical adjustments and avoiding chasing popular investments.
Dalio emphasized that investors should always maintain a diversified portfolio with balanced asset allocation, including allocating part of assets overseas to reduce risk through uncorrelated assets. He does not recommend market timing, as predicting market movements is risky. Instead, he advocates dollar-cost averaging as a sound approach and stresses focusing on asset risk rather than value alone.
Ray Dalio added that stablecoins are not an ideal store of wealth because they are essentially redeemable for corresponding fiat currencies but do not generate interest. From a financial perspective, holding interest-bearing fiat assets is superior to holding stablecoins. The advantage of stablecoins lies in their global usability, functioning as a convenient clearing system for transactions—thus suitable for those who do not care about earning interest. Regarding whether stablecoins can address U.S. debt issues, he stated that if stablecoin buyers already hold U.S. Treasuries, it would merely shift Treasuries from one pocket to another; whether they can generate new demand for U.S. debt remains to be seen.
