RAY DALIO: Independent Thinking Is The Key To Investing
Dalio: Independent Thinking Is Crucial For Success In Financial Markets (The Wall Street Journal)
Bridgewater Associates is known for its unique and brutally transparent work culture. In an interview with the WSJ, Dalio says while at other firms people are asked to keep their thoughts to themselves, at Bridgewater they "have a right and an obligation to say I think this is terrible and explore whether or not that's true." Dalio says Bridgewater is a "bit like entering the Navy SEALs, …There's a period-usually about 18 months-of sort of adaptation to this. And some make it and some don't make it. And so we call it 'getting to the other side.'"
"We describe it as: there's the upper-level you and the lower-level you. The human brain is part thoughtful man …and part animal. And you have to drag yourself. And we see the struggle as between the upper-level them and the lower-level them," he says referring to the difference between what they brain wants and what a person's emotions struggle with. In the end though he believes this transparency is crucial to the "independent thinking" you need in financial markets so you can know quickly identify your weaknesses and address them.
BlackRock Is Adding Cheap ETFs In A Bid To Win Mom And Pop Investors (Bloomberg)
BlackRock is battling it out with Vanguard and Charles Schwab to win over retail investors, reports Christopher Condon at Bloomberg. BlackRock's iShares unit lowered fees on its six existing funds and launched four new funds. "We are now taking buy-and-hold investing up a level with greater choice and flexibility," Patrick Dunne, head of global markets and investments at iShares, said in a press release.
Legendary Wall Streeter Bob Farrell Had A Quote That Described This Market Perfectly (Business Insider)
U.S. stocks are at all time highs but this is still an "unloved rally," according to Jeff Saut, quoted by Art Cashin, veteran NYSE trader at UBS. Saut draws on legendary Merrill Lynch strategist Bob Farrell to explain the current environment.
"Money managers are unhappy because 70% of them are lagging the S&P 500 and see the end of another quarter approaching. Economists are unhappy because they do not know what to believe: this month's forecast of a strong economy or last month's forecast of a weak economy. Technicians are unhappy because the market refuses to correct and gets more and more extended. Foreigners are unhappy because due to their under-invested status in the U.S., they have missed the biggest double-play (a big currency move plus a big stock market move) in decades. The public is unhappy because they just plain missed out on the party after being scared into cash after the crash.
"It almost seems ungrateful for so many to be unhappy about a market that has done so well ... Unhappy people would prefer the market to correct to allow them to buy and feel happy, which is just the reason for a further rise. Frustrating the majority is the market's primary goal."
Millennials Say They Don't Have Enough To Save For Retirement (WealthManagement.com)
Nearly 50% of Millennials say they don't have enough money to save for retirement now, according to a Wells Fargo Millennial Study of 1,600 people between the ages of 22 and 33. Debt is one of the big reasons they don't have enough, with 42% saying it is their biggest financial concern at the moment, reports Megan Leonhardt. Student debt is their biggest concern, followed by credit card debt.
GUNDLACH: Munis Are Rich Versus U.S. Treasuries (Business Insider)
During his latest webcast, Penny For Your Thoughts, Jeff Gundlach of DoubleLine Funds said he thinks Munis are rich right now versus U.S. Treasuries. He said he still owns the same amount of Muni's now as he did in 2010, which is to say he is neither buying nor selling municipal bonds. He said the real reason he isn't selling Munis is because taxes are going higher. Munis have largely been sold to wealthy investors because of their tax benefits. Gundlach said the real question is when they will tax muni income and he warned that "it is coming."