Principles for Living and Investing in a Dynamic World, with Ray Dalio

In this week's episode of The Investopedia Express podcast, Ray Dalio, the founder and Chief Investment Officer of Bridgewater Associates and author of the Principles series of books and videos, rejoins The Express to talk about his latest addition to the set, how he sees the current economic dynamic playing out, and why we keep repeating the same cycles in capital markets.

Plus, we discuss the results of our latest reader sentiment survey, which tells us you are a little less afraid to invest, but not yet ready to run with the bulls. The bulls, however, are already running.

Meet Ray Dalio

Ray Dalio is one of the most iconic investors and hedge fund managers in the U.S. A global macro investor for more than 50 years, Mr. Dalio founded Bridgewater Associates out of his two-bedroom apartment in New York City and ran it for most of its 47 years, building it into the largest hedge fund in the world and the fifth most important private company in the U.S., according to Fortune magazine. Mr. Dalio himself has been named to Time magazine’s list of the 100 most influential people in the world.

Mr. Dalio is the author of several bestselling books, including his most famous publication, Principles: Life and Work, released in 2017. His other books include How the Economic Machine Works (2007), Principles for Navigating Big Debt Crises (2018) and, most recently, The Changing World Order: Why Nations Succeed and Fail (2021).

What's in This Episode?

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Term of the Week: Natural Language Processing (NLP)

This week's term comes to us from Jessica Ortu, who sent us this email:

"Hello Investopedia Express Team! In light of all the talk about ChatGPT and the rise of AI systems across the world, in many sectors from medical manufacturing to finance, I thought a good term this week to include would be 'natural language processing,' or NLP."

"Natural language processing is a subfield of artificial intelligence that deals with the interaction between computers and human languages, and it is used to analyze and understand human language in a text or speech form. NLP is used in various financial applications such as sentiment analysis, risk management, and financial news analysis. The technology behind ChatGPT is based on NLP—natural language processing, which can be used to generate and understand human language."

As an interesting aside, Jessica writes: "this previous paragraph was actually generated by ChatGPT! Hope this is a good one for you!" It is a good one, Jessica; thanks for your suggestion!

Links for Show Notes

• Bridgewater: Ray Dalio, Founder and CIO Mentor
• Principles: Your Guided Journal, by Ray Dalio
  
• Ray Dalio Breaks Down His "Holy Grail" (YouTube)
• What is ChatGPT, and How Does It Make Money?
• January Effect: What It Is in the Stock Market, Possible Causes
• January Rally Tempers Fear Among Individual Investors, But Caution Remains