Last week, Dalio, founder of Bridgewater Associates, published an article about the Chinese market. On Tuesday local time, Dalio responded to the previous article in a LinkedIn article, answering the question "Why continue to invest in China?"

Dalio pointed out that the Chinese market is crucial for "understanding the world" and "diversifying investments." There is no such thing as a bad market, only bad decisions. The Chinese market is very suitable for its investment decisions.

At the same time, he pointed out: "The key question is not whether you should invest in China, but how much. Everyone knows that my investment "holy grail" is to have 15 or more uncorrelated good returns. I think China is one of them , so this will be my core position and I will adjust the position based on my assessment of all the above factors."

The following is the original text:

I was asked why I invested in China.

I invest in China because...

...I've been involved in the Chinese market almost all my life. I was involved in the Chinese stock market before it even existed, providing a modest helping hand to those who created it. For me, investing in China succeeded in all the ways I wanted it to succeed, including showing investors how to diversify and overweight assets that fit any environment, both in bear markets and bull markets, through smart portfolio diversification and overweighting. can achieve good results. The way I invest, there is no such thing as a bad market, only bad decisions. I feel that the Chinese market is very suitable for my decision-making style.

...I had a wonderful 40-year relationship with the Chinese people and Chinese culture, which made me fall in love with them. For me, the relationship with the Chinese people and the Chinese market are mutually reinforcing, and I don't want to leave either side. I will not join when the economy is booming, nor will I quit when the economy is difficult, because I am neither a "friend who can't share the good times" nor an "investor who can't share the good times."

...I love and need to understand the world. To understand the world, I need to understand China, and to understand China, I need to be involved in it in my own way.

...I can't diversify my investments well without investing in China. For example, China and the United States are the two major powers that dominate the world's most important industries. The relationship between these two countries will shape the world pattern.

...To me, China's problems, as I described them in previous articles, are manageable. They are controllable for the following reasons: a) because my investing style is not biased towards outperforming or underperforming in any particular environment (such as a bull market or a bear market for stocks); b) Chinese policymakers will eventually handle the problem properly . Like all nations throughout history, they can restructure their financial systems and economies, and they can respond to political, geopolitical, natural and technological challenges.

... Of course, I still worry about China's problems, just as I worry about the problems in the United States (whose problems are very different from China), Europe (whose problems are also different from those in China and the United States), and most other countries in which I invest. My concerns about these issues help me deal with them appropriately.

...all markets must be judged based on their fundamentals relative to price levels, and good investment opportunities can be found at all times.

...I have invested in many cycles in many countries and learned the lesson that “when it bleeds, it’s time to buy the dip.” In other words, the time to buy is when everyone is uninterested and the market is cheap (which is the case for Chinese stocks right now), especially when leadership looks increasingly likely to do something like "Perfect Go." lever".

For me, the key question is not whether we should invest in China, but how much. As you all know, my "Holy Grail" of investing is to have 15 or more uncorrelated good returns. I think China is one of them, so that will be my core position and I will adjust the position based on my assessment of all the factors mentioned above.

This is just my own reason for investing, not that this is what others should do.