To come up with original ideas is one of the grounds for success as an independent trader or investor in financial markets, although sometimes ideas can proceed on quiet markets. Today S&P 500 SPIKE Volatility After the last round Tariffs are implemented President Trump brought investors to the opposite end of the spectrum, where the markets become so quickly moving that there is not enough time to properly process and explore most ideas.
Access to the latest customers and sales of some of the most respected names Wall Stest can give investors an advantage in the fast market, since they can save research for several hours and work to come up with an idea from scratch. Not copying the position of a large investor, a vision of what professionals do can lead to the fact that retail investors process some of these decisions in order to act on their own.
Today’s signal comes from Ray Galiowho controls The world’s largest hedge -fundIN Bridgewater AssociatesThe field that he sees on the market down the line can significantly affect his decision -making.
In short, Dalio decided to leave the United States market in exchange for Chinese actions, such as Alibaba Group NYSE: Baby Leaving behind the names as Alphabet Inc. NASDAQ: Googl and others in the technological sector.
That Dalio specially transferred
During the first quarter of 2025, Ray Dalio decided to sell his rates on the United States market as most of the market did not expect. Getting rid of AlphabetFirst, Dalio raised his eyebrows, but The sale is not over thereField
In addition to the alphabet, Dalio also decided to leave Meta Platforms Inc. NASDAQ: met And Nvidia Co. NASDAQ: NVDAwhat can give investors a deeper understanding of his view on Technological space general. Although these names are usually considered stable, and generally good companies, problems arise below.
Not problems in terms of problems with specific companies, but rather when considering the market in The global perspective macro (Something than Dalio is known). Compared to Chinese technological companiesThese American names look too expensive for this fund manager to justify retention today, especially when S&P 500 is in such volatilityField
Speaking of S&P 500, Dalio also sold all its possessions in SPDR S&P 500 ETF TRUST NYSEARCA: Spy To agree with the sales of the technological sector.
Now that investors associate this representation with the potential for a decrease by 20% of the index, a call executed Analyst Goldman SachsThe picture becomes more clear.
A US stock marketbeing the strongest and one of the most effective, too expensive compared to Future growth expectationsCalling for normalization in multiple assessments from here. On the other hand, Dalio did not save this recently liquidated capital in standby; He decided to go with value in another place.
Why China How is its choice?
BAIDU stock forecast today
$ 109.55
22.74% growthHold
Based on 17 analysts ratings
| The current price | $ 89.25 |
|---|---|
| High forecast | $ 141.00 |
| Average forecast | $ 109.55 |
| Low forecast | $ 85.00 |
BAIDU promotion forecast
Looking at the spectrum from The prospect of evaluationCompanies, how Alibaba makes much more sense than their American colleagues, but this one was not the only Chinese company Blue Chip Dalio decided to buy in this quarter. Baidu Inc. NASDAQ: Start was also in The upper part of this list Buy this time in China.
However, investors must remember that Dalio is Global macro -investorSo, here are other macro passables that should be considered for this Asian market and how it consists in the fact that it is against the stock market of the United States.
As always, “Buffetr indicator” It may be a great beginning in terms of assessment.
This indicator is a ratio The cost of the stock market regarding the country’s GDPField
For the United States, this ratio is a record maximum of 200%, recently decreases to 185%, which is still higher than the long -term average. The China coefficient looks more than 64.5%, which makes it less than twice as much as the United States.
From the point of view of the tariffs of President Trump (which are mainly intended in China), Dalio can consider the uncertainty of today’s market as something that will ultimately subside. When accepting this ratio of intoSk divergence and remuneration, there are a lot of accounts, Ri is more favorable for China than in the United States, confirming why his opinion can be more concentrated there.
An increase in scaling, looking at the relative price action between the two most popular names in this list (Alibaba and Nvidia), this divergence becomes even more clear.
BAIDU price card, Inc. (BIDU) on Monday, May 19, 2025
While NVIDIA is traded in 88% of its 52-week maximumWhich is also the maximum of the action, the price of Alibaba today is only part of what was all time in 2021, a little more than $ 315 per share.
The message for investors here is that if they are invested in American technological actions, they may want to consider current grades next to the future Growth prospects And whether they are justified. If nothing succeeds, the choice of Dalio suggests that it can make a more profitable deal Chinese technology Moving forward.
Before considering Alibaba, you will want to hear it.
Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their customers to buy now before a wider market is won … and Alibaba Group was not on the list.
While Alibaba Group currently has a purchase rating among analysts, analysts with the highest rating believe that these five promotions are better buying.
View five shares here
Study the basics of options trading and how to use them to increase profitability and risk management using this free report from Marketbeat. Click on the link below to get a free copy.
Get this free report